Self Employment on Bad Credit Auto Loans

In order for you to know how to qualify for approved auto loans with self employment income, you first have to identify the qualification issues. If you’re both credit-challenged and self employed you need to know the issues you’ll be facing when you apply for terrible credit auto loans.

There are poor credit car loan processes that allow potential buyers to avoid a tote the note dealer while reading up on many of the issues that often lead to repossession. Unfortunately, tote the note lots are sometimes the only choice for self employed buyers with bad credit if they either underreport or incorrectly report how much they make.

Self employed individuals are one of the most difficult bad credit auto loan approvals. This usually happens because self employed workers are responsible for keeping their own records and reporting this income on their income tax returns.

It may be possible for self employed individuals to reduce the amount of tax they pay by not declaring the full amount of their incomes. But doing this could prevent them from getting a car loan, especially if their FICO scored fall below 640. If regular banks don’t usually require proof of income, this isn’t the case with bad credit lenders.

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They require the verification of an applicant’s income through a professionally prepared tax return. Whatever isn’t listed or declared in a tax return, even with the availability of supporting bank records makes it invalid as a proof of income. Bad credit lenders require a monthly income of at least $ 1,500 to $ 1,800. Which means that self employed individuals need to report a minimum yearly net profit between $18,000 and $21,600.

Even if the reported net profit meets the above requirements, there is a chance that monthly expenses are out of proportion to the reported income. For example, someone reports an income of $2,000 per month. If this person’s real monthly income is $3,500, reasonable monthly expenses could be $1800. In this case, even though the actual debt to income ratio is acceptable, the difference between the reported income and the expenses would not qualify that person for a bad credit car loan.

If you are self employed, you have to consider the income you report because this will affect your debt to income ratio as it relates to qualifying for a bad credit auto loan. If the income declared on your income tax return is too low or if your monthly debts are not in line with your reported income, a bad credit lender will definitely not approve your loan application.

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Important Information for Joint Mortgage Loan Applications

If you and your spouse are thinking of applying for a joint mortgage loan but one of you has bad credit, you may really have a difficult time. This is because the lender usually considers the lower credit score in deciding the rate of interest it will charge to the both of you. Here are some of the things you have to know about joint mortgage loan application with bad credit.

1.) The Person with Higher Credit can Apply for the Loan Alone
Although with two borrowers it is easier to get a higher amount of loan, this is only possible if both of you has good credit. Thus, if one of you earns a good income and has a good credit, you can already qualify for the mortgage.

The person with the higher income is usually considered as the main borrower. Just know that you will not be qualified to a bigger of loan with only one applicant.

2.) Find a co-signer
A parent, family member or close friend who can act as a co-signer can help you qualify for the amount of loan that you desire. For as long as their credit is good, any of them can take the place of your spouse with bad credit as a co-applicant. If you are thinking of obtaining an FHA mortgage, you must find a co-signer who is related to you. As a word of caution, you might have difficulties convincing your potential co-signer to sign for you if he or she has a higher income than you and your partner. The reason for this is that he or she will be considered as the primary borrower and that will be too risky for him or her.

3.) Legal Information
If you have finalized your decision to apply for a loan using one of your names, you can still request for the deed of the property to be placed on both your names since the deed and mortgage are usually separate. But, there are instances when the lender has to decide on this so make sure to check their policy first. Moreover, if only one name is stipulated in the mortgage but the two of you will pay for it, make sure to have a signed agreement in place just in case you separate. This is especially a security measure for couples who are not married.

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If you are one of those many people with no credit or bad credit, you surely have a difficult time in obtaining a loan or getting a credit card. Fortunately, there are different financial institutions providing credit cards that do not require a credit check. Although these credit cards usually charge higher interest and charges, they are a good way to improve your credit standing. But, if you are thinking of getting these cards, you should consider some facts before obtaining them.

Fact 1: Most of these cards are not credit cards

Most cards that do not require a credit check are really not credit cards. They are mostly prepaid debit cards. Since you have to deposit your money to be able to use the card, you are actually not borrowing anything from the card company. This is the reason why there is no risk in taking them. If you are having a difficult time controlling your spending, then this is the right option for you.

Fact 2: Your card providers report to the credit bureaus

Whether you have a low limit or a prepaid debit card, there is a great chance that your transactions will be accounted for by the major credit agencies. Because of this, the use of the cards is a good way to enhance your credit score. Moreover, there are cards that give you a small loan that you can pay in full for 12 months. If you can pay on time, your scores will be greatly improved. At the same time, you can show the lenders that you have already changed your financial behavior.

Fact 3: Credit Cards with No-Credit Check Have High APRs

One of the attractive features of a prepaid or loan card compared to a credit card is that it does not require a credit check. But, most of these cards charge high interest rates. This is the card company’s way of safeguarding themselves against the chance that you will be in more debt because of your previous bad rating.

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Facts to Know about Child Identity Theft

Babies can be victims of identity theft, a fact that parents do not realize. It is even more likely to happen than identity theft in adults. A recent report of Carnegie Mellon Cylab says that social security numbers that have never been used are highly valuable because thieves can use them with any date of birth and name.

The numbers that have been stolen are then utilized for purposes of illegal immigration and organized crime. The report further adds that the SS numbers of minors are so useful because there is no organized process at the moment that can check the name and date of birth of the original owner of the number. This means that for as long as the number has a clear history, any thief can attach a name and birth date to it. Once there is a violation, it can go unnoticed. Even credit reporting bureaus cannot detect it. For parents to be on guard about the possibility of their child’s Social Security number being stolen here are some important facts to know.

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1.) Children and adults are equally at risk of identity theft.

2.) As a parent, you should check your child’s Social Security number as early and as often as you can. Take note that the longer the theft uses your child’s number, the more complex the case becomes and the more difficult it is to resolve. If you wait for your child to get older before checking her number and you find out that your child is a victim of identity theft, your child may have a difficult time getting a job, renting an apartment or even obtaining a mobile phone plan.

3.) A child’s credit record is not cleaned up by the time they turn 18. This means that if a child grows up and is ready to use his Social Security to apply for accounts and for a credit check, he will still be held accountable for any debt and account linked to his number whether he incurred the account or not.

4.) Pre-approved offers for your child in the mail are possible signs of identity theft. Once you receive this, immediately investigate and do not disregard the situation.

5.) Family and friends as well as criminals are the most common perpetrators of identity theft. They use this for themselves or sell the numbers to the black market.

How to fix a credit score or even how to improve a credit score is a hotly debated concept these days. Especially wit

h the current state of the economy, many people are plagued with bad credit and are looking for ways to get a higher credit score to get better interest rates or even to buy a house.

The thing is, who do you follow or who do you even trust? Afterall, it’s hard to even listen to governments. With some of them looking at going into default, even they seem to have credit issues.

That being said, here are a few notes on common misbeliefs regarding credit and how to improve your credit.

You may have heard some of these things in your time. I bet you may be surprised to see that some of them are just plain bad advice.

Three Myths in Boosting a Credit Score

Credit building is one of the many things in life that can sometimes revolve around myths. People think that there are certain things they do that increases their score even if these things really do not impact their scores in any way. The truth is there are really no easy credit score fixes just like what commercials claim. The simple formula to credit score improvement is having good payment behavior and possessing a healthy mix of credit. Here are some of the wrong beliefs that are not helpful in boosting your credit score.

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Credit Improvement Myth # 1: Choosing to get rid of credit card offers will help

John Ulzeimer, SmartCredit.com’s consumer education president, said that it is a common belief among people that if they choose to get out of credit card offers, the credit inquiries in their reports will be lesser. But, the truth is, these inquiries are “soft” and do not really affect the score. He further adds that people can still welcome the offers but it will not strengthen their credit scores.

Credit Fix Myth # 2: Closing old accounts improves score

Trey Loughran, Equifax’ personal information solutions’ President, says that closing your accounts are not really helpful to a credit score. It can even cause a slight damage by shortening your credit history and leaving you with a minimal amount of remaining credit.

Credit Repair Myth # 3: Opening more accounts helps boost credit score.

Several consumers experiencing problems in their credit think that having many accounts will show that they can manage credit. Actually, this has a reverse effect. According to Experian’s public education director, Rod Griffin, more accounts will make lenders wonder why all those credit are needed. He added that it is even a sign of risk that can make your credit score suffer. What lenders will actually see if you have several accounts is the number of hard inquiries in your report. Those inquiries will decrease your score and lenders will worry that you might be in dire need of financial help because you are gaining access to too much credit.

So, while you are working to get that perfect 800 credit score, just know that there are some things that will help you and some things that are just plain malarky.

Here’s to your credit and financial freedom!

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