Good Credit Is King When Qualifying For Mortgage Programs

Writen by Mark Barnes

If you want to purchase a new home or refinance your current mortgage, be sure to check out the wide array of loan programs available. If you have less than excellent or even poor credit, you can still qualify for a loan. If you have outstanding credit, though, you are in the proverbial driver's seat, when it comes to selecting your loan program. Be sure to find a good mortgage consultant, and carefully explain exactly what you need. Here are just a couple of "outside-the-box" programs that come in handy for some people but require excellent credit ratings.

Stated loan programs are designed for a person whose income or assets fluctuate from month to month and year to year. Not many banks offer stated programs. Many people who need stated programs get turned down by not only banks but by inexperienced mortgage brokers who don't understand the breadth of the programs at their fingertips. So, you may have to enlighten them with your own insight by telling them this is the program you need.

Stated programs are for people who may not qualify for a conventional loan, because they do not meet income requirements a lender has. A prime example is someone who does not show all of her income on a W-2 tax return, for one reason or another. This person may make enough money to cover the mortgage payment, but she can't prove she makes it on paper. Lenders like to see two years of W-2 income. This proves to them that you consistently make enough money to pay back the loan. Now, it's important to note that this is a good credit program, and a lender will want someone with at least A-minus credit for approval. Here is where all that work to maintain your spartan credit record is going to pay off.

What the stated loan requires is all standard documents, except income verification. In other words, the loan officer is going to state your income on the application, and no proof is required. Please note that this program is not intended for someone who works at McDonalds to try to state that he makes $200,000 yearly, so he can get approved for a $400,000 loan. It is intended for people, like salesmen, whose income varies or for businessmen, who work on bonuses, which they may not receive until the next year. As long as the income is reasonable for the profession, no underwriter will ever question it. So, if you needed to make 60,000 yearly for approval, but you only show $54,000 on last year's W-2, your mortgage broker can get you a stated income program, and he will simply write $60,00 on the application. Don't worry, the lender won't ask for pay stubs or tax returns. Your credit rating speaks for itself. In other words, the lender sees that you have an excellent payment history on your other debts, so he is willing to take on a bit more risk.

A stated asset program works the same way, and good credit is required for approval in this program, too. Lenders require cash reserves, in order to cover several months of mortgage payments, in the event something goes wrong after the loan closes, like you lose your job or get hurt. This can be a problem for people who have no savings, stocks, or retirement accounts, which are all acceptable forms of reserves. If you fall into this category, you simply ask for a stated asset loan, and the mortgage broker will state enough assets on your loan application to appease the lender.

This seems fraudulent, you might say. It isn't, as long as you follow the guidelines set forth by the lenders. Remember, they created these programs, so they could loan more money. You'll pay, of course, because the lender will hit you with a premium on your rate, because the loan is more of a risk. So, instead of getting a 6% rate, you might get as high as 6.75%, but at least you'll get your loan.

There are many other loan programs that allow you to borrow more of the equity in the house, let's say up to 95% or even 100%, due to a great credit rating. Some programs allow for an improvement on your interest rate.

It's always important to ask your mortgage broker if there is some kind of incentive because you have A or A+ credit. Most lenders allow the mortgage broker to either give you the break in rate, or they'll give it to the broker in a cash commission. Many unscrupulous brokers will never mention the credit bonus to you, and they'll make up to .25% of the loan amount for themselves.

So, if you had a $200,000 loan, and the lender allowed a .25% interest reduction or commission to the broker, and the broker takes it, instead of giving it to you, that mortgage broker would make $500.00 extra dollars, which would be paid by the lender. Of course, if you had received the .25% better rate, your payment would decrease by about $30.00 each month and $360.00 each year. That's nearly $2,000 if you have the loan for five years that you would lose to a greedy mortgage broker. So, always ask for something, due to your excellent credit.

And always remember, with good credit, you are king. And kings always make the rules. Learn more at www.winningthemortgagegame.com

Mark Barnes is author of the wealth-building system, Winning the Mortgage Game and other investment real estate books. He is also a suspense novelist, and his new novel, The League, will thrill both suspense and sports fans. Learn about Mark's wealth-building system and get his free home loan course at http://www.winningthemortgagegame.com. Learn more about The League and read an excerpt at http://www.sportsnovels.com

Credit Cards Can You Handle The Responsibility

Writen by Margaret Ntifo

What often comes to mind when you hear the phrase, "Don't leave home without it" is the old American Express advert that many of us can still remember.

Today, many people would not leave home without a number of things: their mobile phone, business card, or credit card! Your mobile phone allows you to stay in touch with people; Your business card tells the world who you are, or rather who you think you are! Your credit card can pay for both mobile phone and business card!

So why do many think of credit cards as such bad things?

Credit cards are one of those things that you either love or hate, but in themselves they are neither good nor bad. Credit cards are simply tools, a modern day invention, a little plastic card bearing an account number assigned to the cardholder that can be used to purchase goods and services on credit. It simply indicates that the cardholder has been granted a line of credit. These days they are even accepted as evidence of the holders' identity.

Like any tool, it's how they're managed that determines whether they end up hurting, or helping you. When used properly they can flexible, convenient and extremely useful!

Their main advantages are:

· They are a safer alternative to carrying cash.

· When used responsibly, you build a good credit history and

· They can be helpful during emergencies.

On the other side of the coin, it's very tempting to whip out a piece of plastic at a moments notice, which makes them rather dangerous for some people. …And, because they don't feel like money, there is a tendency to over-spend. Sadly, about 60% of cardholders carry over monthly balances, which can lead into debt.

So using credit cards comes with a responsibility that as individuals you have to decide whether you can or cannot handle! Much depends on the holders' knowledge and understanding of financial issues, financial acumen and tolerance of perceived risk.

What I find exciting is that credit cards companies have been falling over themselves to give out free money in their lust to compete with each other and get a bigger slice of the market. So with a decent credit history, it's unnecessary to pay them any interest especially when many card companies are willing to lend to new customers at 0%. Some major providers will even pay the money directly into a bank account.

It's hardly surprising that a lot of people who've paid interest in the past have decided it's about time they used this money to their advantage! In many cases, these consumers have been able to use their credit worthiness to position themselves much more advantageously without needing to spend more money from their own coffers. Many people have admitted to buying their first property using money from credit cards.

As consumers, it can be beneficial to extend our thinking to accept the advantages of managed debt, despite the disadvantages of consumer debt. Instead of rushing out to buy the latest fad or hi-tech gadget using your credit card, wait: Could you use it more advantageously?

Anyone choosing to play the credit card game should educate himself or herself beforehand. It requires some level of discipline. Following are important hints one needs to know about credit cards to play the game successfully.

1. Be disciplined, not forgetful or inattentive.

2. Note the expiry date of 0% "introductory offer".

3. Set up direct debit for minimum monthly repayments

4. Never, ever spend on a card after balance transfer

5. Payment protection insurance not needed

6. No cash withdrawals!

Better still, what can you do with the money when you have it? Find yourself a good wealth coach to help you devise a workable solid financial plan. That's a millionaire habit.

All said and done, if you had to choose between your mobile phone, your business card and your credit card, what would your answer be?

Copyright 2006 Margaret Ntifo Margaret Ntifo is a Wealth & Prosperity Coach, a Speaker and author of 'The Money, Wealth and Prosperity' E-Program and 'The Dairy of an African Princess…' Margaret specialises in helping clients design & create compelling lives & businesses to love. Further information visit: http://www.MargaretNtifo.com/ Or subscribe to her free 7-Day e-course at: http://www.moneywealthandprosperity.com/mini_course.html You may distribute this article in its entirety providing this copyright notice and full information about contacting the author are attached.

Chase Announces Two New Business Credit Cards Should You Get One

Writen by Ed Vegliante

Chase recently announced the release of two new credit cards for the business community. The Chase Platinum Business Card and the Chase Business Rebate Card are now available, giving business people more options and a better deal than what they can get through ordinary business cards. Are these cards worth getting? More importantly, do they offer to your business a reason to switch? Let's examine the new cards and what they have to offer to you, the business person.

There are business credit cards that adequately meet most business owners' needs while there are other cards that really stand out. The two new credit card offerings from Chase are a pair of stand out performers.

Quarterly Management Reports

To help busy card holders, Chase's two new cards share a common feature: they offer quarterly management reports for free. This is especially helpful when you consider that businesses must account for how their money is spent when it comes to tax time. By utilizing the management reporting feature, businesses can readily document important tax deductions. No worrying that something has been overlooked; the reports do the tracking for you. Less work for your busy accountants too!

0% Intro APR

Both the Chase Platinum Business Card and the Chase Business Rebate Card offer a fixed 0% APR for the first twelve billing cycles. This feature is especially helpful to the business needing the convenience of a credit card without worrying about paying off a large balance every month. New business owners are attracted to such a feature as the 0% introductory APR can relieve some of the pressure of financing a new entity.

Big Credit Lines

One of the toughest parts of starting a new business is securing an affordable line of credit. Your bank may offer terms, but those double digit rates can be a real turn off, especially if your cash flow is limited. The Chase Business Card and the Chase Platinum Business Card solve this problem by offering huge credit lines up to $35,000. You can save hundreds if not thousands of dollars in interest payments for the first year if you elect to go with a Chase card vs. the typical bank loan.

Important Ingredients

Both Chase cards offer no annual fee and have important balance transfer offers.

Distinguishing Features

As much as the two new cards have similarities to them, they each have a distinguishing feature. With the Chase Platinum Business Card you get additional benefits including $1 million dollar travel insurance, $3,000 lost luggage insurance, and more. With the Chase Business Rebate Card you can get as much as 3% cash back on select purchases. When you take a client out to eat, purchase supplies at the office or building supply stores, or fuel up your car, Chase rewards kick in when you use your card. For all other purchases the rewards rate is 1%.

Of course, the biggest decision for you is which card to select. Both cards come equipped with many useful features and are certain to attract customers who need a business card that works so well for them. Compare the offers and select the one that meets your needs and start benefiting from your new Chase business card today!

Click here to view Chase Business Credit Cards. Ed Vegliante runs http://www.credit-card-surplus.com, a directory of credit card offers.

Understanding College Credit Cards

Writen by Robert Alan

Today credit cards are everywhere you look and even college students are great candidates for owning their own college credit cards. Many students are now living on their own or in dorms and need to learn to maintain their own expenses making college credit cards a necessity for many students.

College credit cards are basically just like regular credit cards. However, since college students do not have any type of credit history, they are usually unable to apply for and receive a regular credit card.

However, the question remains, why would a credit card company be willing to give college students credit cards if they have no way of paying back the money they charge on their college credit card?

Well, there are two very good reasons. Most credit card companies that offer college credit cards see a large opportunity in college student population. In fact, the majority of college students stay loyal to their credit card company even after they graduate from college.

It has also been reported that many college students will, in fact, pay on time and give the companies workable income. With the proper use of credit cards, college students can ensure they have good credit when the time comes for them to purchase a new car or new home.

College credit cards are usually preferred by most parents. They know their children may have the chance to overspend but they also know that with their own college credit card they will be building a stable financial future and receive other benefits that regular credit cards do not offer.

College students can use their cards to pay tuition fees. Some college credit cards even offer many unique benefits such as rewards if they pay their balances in a timely manner.

Most college credit cards also offer students lower interest rates as long as the college student maintains good grades. The use of credit can teach the importance of how to create and live on a budget and is great for parents that cannot afford to finance or manage all of their college student's spending.

College student credit cards can also be set up by parents as pre-paid accounts; this way if the college student needs a little extra money, parents can always add to the credit card but ensure they use the credit card wisely and do not overspend.

The ultimate goal with college credit cards should be for students to learn how to use credit cards responsibly and to learn what they charge on their card is their responsibility.

For more discussion about understanding college credit cards, Robert Alan recommends that you visit CreditCardAssist.com

Home Equity Line Of Credithow To Avoid Five Traps And Give A Look To An Opportunity

Writen by Mark Tern

If you need money and you are a home owner, a home equity line of credit (also known as "HELOC") could help you solve your problem. With this, you can borrow money against the equity in your home, i.e. the difference between your home value and your current mortgage debt.

As you are taking money against your home, asking for a home equity line of credit is a serious task; you must sure you are going to get a type of service which is fitting exactly with your needs.

Here are a list of five points that you have to care about if you want avoiding some nasty effects:

1) Cost of the application process

Some lenders offer home equity line of credits with a large one time fee. Others don't mention it but continue to add "underground" costs. Ask your lender clear informations of this and an explanations of the items in the legal documents about costs.

2) Low starting interest rate

Sometimes you could benefit of a low starting interest rate. This is for certain an attractive option, however you are warned to check how the rates are going to become just after the initial period. Usually they become much higher.

How you can check it? Simply check the contract details, find exactly what is the financial base rate yours will be based to, ask where you can check it (usually the base rates are published on newspapers), and ask for projections of the base rate value for your home equity line of credit expected lending period. It's advisable also you ask for a second opinion to one of your preferred bank competitors.

3) Variable interest rates

Home equity lines of credit with variable interest rates computes the actual interests to be paid on a base rate defined in the contract you are signing. Usually this will be the interest rate set by the Federal Reserve Board.

As the interest rate varies, you can't predict exactly what you are going to give back in your next payment. This isn't necessarily a bad thing; however it could explode if you are not careful. Why? Give a look at the next two points.

4) Beware of balloon payments

Sometimes home equity line of credit lead to a so called "balloon payment", i.e. a big payment to be give back by the borrower after an initial credit period is expired. This could put you in serious trouble

5) Beware of too high payments

Sometimes there is no balloon payment danger, but you have to pay each and every month a substantial payment. This could constraint you too much if your financial status requires more flexibility. Again, check how things are with your lender, and read carefully your contract. Clear what is the minimum payment you have to give back each month, so you can evaluate if it's sustainable by you.

Consider the alternatives to the home equity line of credit

This has always to be done, especially if the previous points and, most important, fuzzy answers from the lenders make things for you much harder. For example you could ask for a credit line that doesn't have your home as collateral; you could resort to your business or other properties you have; or you could opt for an income based loan.

If your only chance is to exploit your home equity but can't stand for the traps of home equity line of credit, then you could go for a home equity loan. It's less flexible but could be a lot safer for you.

To get started the proper way, get the Home Equity Loans Special Report you can find for free at http://home-equity-loans.thesolution2.com

Mark Tern is the author of the Home Equity Loans Report you can get for free at his Home Equity Loans Website where you can see the difference between a home equity line of credit and a home equity loan and learn how to choose the safest. Check also his Home Equity Loans Blog.

Can Credit Search Entries Affect Your Ability To Get Approved For A New Loan In The Uk

Writen by Jack Miles

About Search Entries:

Every time a lender checks your credit history from your credit file (i.e. each time you apply for a loan), your credit-file will have a record of this. These records are known as search entries. The search entries do not generally say whether you were approved or denied credit, but they do reveal the name of the lender(s) processing previous applications. Lenders automatically impart this information back the credit bureaus and see it as an important tool.

As you can imagine, with this information other lenders can see if you have been applying for many, many loans. The lender dealing with your current application would expect to see a few search entries, but if there are more than, say, 20 in a few months he will be very wary, and may reject your application. (Of course he will be adding one more entry to your credit-file himself in the process!).The original reason for a credit search entry being inserted into credit files was to check for fraud, but lenders have since found much value in watching the habits of consumers applying for credit.

There is no specific number of searches that would cause an application to be turned down flat, but as above, too many unrelated credit searches on your credit file will certainly not be helpful in your quest to get approved for credit.

Limiting credit search entries:

Try to limit search entries by only applying for 1 or 2 loans a month. If you see duplicate searches appearing on your credit file for the same loan, these should be removed. Write to the credit agencies to ensure they are. All searches should expire after 2 years, so check that they are deleted after this time and if not you can insist this is done too.

Once your credit file contains a minimal number of credit search entries then you can be sure that you have the best chance for getting approved for your next loan.

Jack Miles, Author of "The Complete U.K. Credit Repair Guide", produced the guide to help people restore a poor credit rating and enjoy the benefits of good credit. The guide shows subscribers step by step how to repair bad credit history, how loan application forms are scored, how to remove court judgments (CCJ's) and also how to best fill apply for loans to gain the best chance of approval.

For more information please visit The Complete UK Credit Repair Guide at http://www.creditsecrets.co.uk

This article is Copyright 2005 Jack Miles.

Reprint Rights: This article may be reprinted only in full (unedited), and complete with author's name and active links. All other rights reserved.

Low Rate Credit Cards Choosing The Best Card

Writen by Robert Alan

Teaser rates offered on low rate credit cards are a boon to customers. Low APR credit cards are an ideal choice for customers who carry a steady monthly balance. With so many options, finding the right low APR credit card suited to your lifestyle could be a challenge. Yet, it is worth the effort because, over the years, the cost of carrying a balance at a high interest rate could outweigh the other benefits associated with the card.

Shopping for a low APR credit card implies comparing credit offers not just on the interest rate offered but also on various other parameters. Most of these low rate credit cards require you to have a good or excellent credit rating to qualify for their lowest rate. However, a decent credit rating will fetch the card at a slightly higher rate.

The best way to start shopping for a new low APR credit card is to compare costs, terms, and conditions with the cards you already possess. Before switching to another low rate credit card, you should ask your current card company to lower the existing APR. If that is not possible, then choose a card that would fit best with your spending and repayment habits.

Factors to Consider while choosing the Low APR Credit Card:

1) Different rates for different services offered on the same card – low APR credit cards may have differential interest rates for the variety of services offered on the card. For example, the interest rate for cash advances could be 20% but the interest rate for purchases could be 9% and balance transfers could be at 0%! It is important to determine the primary use of the card and then decide on the card that offers the lowest rate for the service that you need.

2) Variable versus Fixed Rate – The interest offered on low APR credit cards could be variable or fixed. Fixed rates tend to be low and are advisable for customers who carry a steady balance. A small change in the APR rate could make a big difference if you carry a balance on a card month on month.

3) Differential Rates for Different Balances on the Same Card – Certain low APR credit cards offer very low interest rate on certain balance amount and charge hefty interest if you cross that range. An interest rate of 9% could be applied on a balance of $500 but if your balance goes to $900, the rate might increase to 15%, for example

4) Low Interest for a Pre-Determined Time – The low interest offered could be an introductory offer or for a limited time period. This is risky, as you may have to pay heavy interest charges if you carry a substantial balance at the end of the said period.

5) Cash Back Options – Many low APR credit cards offer a certain percentage as cash back to you depending on the purchase type. The cash back percentage may be 1% or 5% and could be available on a wide variety of purchase items.

6) Balance Transfers – If you have multiple credit cards and need to consolidate, low rate credit cards offer a good option. Certain cards allow 0% APR on balance transfers with no transfer fees. Since this could greatly help in reducing debt and substantial savings in interest, it is worthwhile to evaluate the different interest rates offered.

7) Air Miles or Frequent Flyer Miles – Some low APR credit cards offer conversion of accumulated reward points to air miles to encourage customer spending. It is not a bad idea to benefit both from the low interest APR along with free air miles.

8) Grace Period (Interest Free Period) - Many low rate credit cards charge interest from day one of your purchases. However, certain cards may give a grace period and not charge interest if you repay the balance in full each month by the due date.

9) Fees – Most low rate credit cards will offer reduced or even no annual fees. Choose the one that does not add to your debt burden by charging hefty annual fees.

If you consider applying for low rate credit cards, there are a variety of websites online that offer comparisons of various low APR credit cards available in the market, and can be tremendously helpful in your search for low rate credit cards.

For more information on low rate credit cards, Robert Alan recommends that you visit CreditCardAssist.com