Bad Credit Loans For Christians
Bad credit loans for Christians are available through companies that specialize in lending to consumers who need emergency cash and who may not otherwise be able to receive a loan. The loan industry is changing and with so much emphasis on consumer loan histories, most lending institutions are credit driven. As debt continues to climb in America, however, the competition among financial companies is pushing ways to extend lending opportunities for people with less than perfect financial histories. Also, competitive online companies have increased their needs to find clients or customers. There are now lending institutions that easily offer loans for people with poor scores as the results of increasing debt, poorer credit ratings, and heightened competition.
Several sources are available that lend money to poor-risk consumers. Some banking institutions offer personal, secured loans to those who have a track record of poor money management. Lenders that offer these types of options require collateral from the borrower. Home equities, cars or trucks as well as other assets can be used for collateral. There are also lending institutions found online that offer bad credit loans for Christians. Depending on the individual need or on a consumer's personal, financial condition, several options exist. There are payday loans that are available since this option does not require a financial history review. Lenders provide a stated amount only until a consumer's next payday when the amount is due in full. Quick cash payday companies charge extremely high interest rates and late fees.
The Internet also offers many more options as well as information about how and where to borrow money. There are hundreds of payday lenders offering amounts from five hundred to three or four thousand dollars. Again, it will depend upon personal circumstances and the particular lender. The Internet also hosts many financial companies that will offer larger sums of money for people who need bad credit loans for Christians. Browsing throughout the different businesses that advertise loan options can provide consumers with an idea of what the best terms and conditions are that may be offered to them.
There are also many sources listed online for credit help to Christians who would like to repair their financial histories and improve their scores. These sources can provide a solution to long term problems which many people want to correct for a healthy financial future. There are non-profit Consumer Counseling Agencies that can help families or individuals reduce debt and learn to manage money properly. "Only by pride cometh contention, but with the well advised is wisdom." (Proverbs 13:10) The Bible teaches that we are to seek counseling when there are troubles in our lives. Some circumstances, of course, are out of a consumer's control and can lead to unforeseen financial hardships. Whether a consumer is looking for bad credit loans for Christians because of a crisis or because of poor financial management habits, consulting with a credit counseling agency can be beneficial.
A bad credit fix can consist of consumer credit counseling services encouraging consolidation, payoff, or reduction of debt. Typically, an individual would need to repair their financial history before they purchase a home, vehicle, or receive discounted rates on renting and insurance. Consumers seeking any type of credit with a poor financial history should consider bad credit fixes immediately. The problem with most repair options is that they require the individual to pay off the majority of their debt. Generally, the individual in need of this assistance does not have the funds available to payoff their debt. There are some strategies available that allow the consumer to repair problems while saving on fees and additional expenses.
One way to lower debt is a consolidation loan. While this type of bad credit fix virtually replaces one type of debt for another; the consolidation loan usually results in a lower interest rate than the combined interest rates, and offers the debtor one low monthly payment for a longer term. The goal for bad credit fixes is to get the consumer completely out of debt, not to offer a convenient way to bring down the amount owed in order to slip back into the same situation. There must be a certain level of self control if using the method of consolidation.
The next strategy the consumer can consider is seeking a financial counseling service. This is an organization that acts as a third party intermediary in the bad credit fix situation to contact the creditors and make arrangements between them and the debtor. This is done by submitting one payment a month to the financial counseling service, and they divide that payment and submit it to the creditors as per the agreement. Bad credit fixes involving a third party intermediary should allow the debtor to check with the BBB or Better Business Bureau to establish a high customer satisfaction rating with the counseling organization before signing any paperwork or submitting payments to the intermediary.
The most effective bad credit fixes will involve the strategy of paying down balances to at least 20% of their limits. This can raise a financial reporting score up to 30 points in as little as 30 days. This strategy may include the debtor seeking funding from a friend or relative if they are not able to pay the necessary amount. A Christian's goal in a bad credit fix should be to eliminate all forms of debt. The Bibles says in Ecclesiastes 5:4-5 "When thou vowest a vow unto God, defer not to pay it; for He hath no pleasure in fools: pay that which thou has vowed". A person that creates financial obligations makes a promise to pay their creditor. Any promise made by a Christian to another is also made unto God.
Bad Credit RepairA bad credit repair will increase financial scores and allow the consumer to obtain lower interest rates for future purchases. The higher the scores the lower the interest rates the consumer will pay on credit cards, auto insurance, home mortgage, and more. Customers in need of bad credit repairs will pay higher interest on every kind of loan because there is more risk involved for the lender. There are many organizations on the Internet that offer programs to help improve this situation for the individual. Financial counseling agencies, law firms, non profit agencies, and others advertise many options. Most of these institutions understand the federal laws that protect the consumer. They also understand the procedures needed to begin disputes with lenders. Financial reports from all three major bureaus must be involved to accurately begin to repair these problems.
The individual determined to raise their financial scores may implement bad credit repair. It is important to contact all three major bureaus and ask for a free annual copy of the financial report. After receiving this information, the consumer can begin to check all parts of the document including personal information. Each bureau has a dispute form that can be utilized by the individual to address errors and derogatory information. Once the bureau receives the disputed information 30 days is allowed to make inquiries and investigations. If an updated copy is not received by the customer after 30 days, follow up will be necessary with the bureau on bad credit repairs. If the bureau doesn't receive verifiable information from the other party questioned, then the questionable item must be removed from the report. If they do receive information but it is not satisfactory to the consumer then a statement can be added to the report by the individual, stating their case.
Persistence and determination are required in making bad credit repairs. Dealing with three reports, three bureaus, and time is required to see satisfactory results with bad credit repair. In some cases the consumer may want to use a counseling agency or law firm to perform this maintenance. Some agencies will charge a fee, and they may also provide a warranty with satisfaction guaranteed. With bad credit repair other alternatives may include debt consolidation since poor credit results from late payments, collections and repossessions, among other things. Debt consolidation can be found online and is often done by taking out a second mortgage, refinancing a mortgage, or obtaining a home equity loan. Many other choices may be available to assist the consumer and are found on the Internet. "As every man hath received the gift, even so minister the same one to another, as good stewards of the manifold grace of God." (1 Peter 4:10)
Individuals can easily find assistance from a bad credit repair service company on the Internet. There is also quite a bit of information on the successes and failures of these organizations online and perhaps the best information concerning this type of business comes from the Federal Trade Commission. These organizations will advertise their ability to erase poor financial records, legally create a new identity, or remove bankruptcies, judgments, liens, etc. from a personal financial file. The FTC advises against believing those claims of a bad credit repair services company, and, instead, encourages individuals to work at improving financial records on their own.
The FTC warns consumers to beware of a bad credit repair service company that charges a fee up front, before any assistance is provided by the organization. Also, the FTC encourages consumers to avoid working with companies that won't tell the individual what their legal rights are and what can be done on their own. The bad credit repair services company might tell the consumer not to contact the credit reporting authorities (CRAs) because it takes the expert technique of the organization to get results. This information should not be taken seriously. If the organization suggests for the individual to invent a new identity by applying for a new Employer ID to use instead of a Social Security Number, they should not be used for assistance. Any advice to take part in any illegal activities or anything that seems somewhat out of the ordinary should be avoided. This could result in criminal charges and prosecution for fraud. It is a federal crime to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses, despite what organizations or advisors may say.
The law allows the consumer, without the help of the bad credit repair services company, to tell the CRA what information they think is inaccurate, to back it up with whatever documentation is available, and to request that it be removed. It does not take a bad credit repair service company to make the CRA investigate the items in question unless they consider the consumers dispute to be frivolous. If the investigation does not resolve the dispute, the individual can ask that a statement of the dispute be included in a credit report, and that a copy be sent to anyone who has asked for this financial report in the last six months--all without the help of a professional organization or advisor. The consumer does not need a bad credit repair service company to write to a creditor, stating that an item is being disputed. Although advisors and companies may be helpful in getting disputes settled, they are not entirely necessary in every situation. Knowing when to choose outside help will rely on the judgment and discretion of the individual. Some may rely on prayer and understanding from God on what to do in this situation. "The effectual fervent prayer of a righteous man availeth much" (James 5:16).