Little white lies are harmless, right? Not when they are listed on your loan application. Lies on your loan application are definitely not harmless and, in fact, can be detrimental to your chances of obtaining credit. Different people have different reasons for lying on their loan applications.Some people want to hide a bad credit history while others do not want to reveal personal information. Still, regardless of the reasons, being a loan liar is not a good practice. It can hurt you and undermine your chances of getting a loan. Unfortunately, loan lying is fairly common in Britain.
Who are the Loan Liars?
Loan liars come from all walks of life. Men between the ages of 26 and 40 make up two thirds of those who lie on their loan applications for secured loans, insurance and credit cards. Of these men, approximately 64 percent of them lie to hide a poor credit history. By contrast, 77 percent of women lie on their loan applications to hide a poor credit history. Of this number, 17 percent use an alias. Of all the loan liars, 10 percent admit to using false documents to support their false claims on loan applications. Also, 9 percent of men and 7 percent of women lie about their status of employment or salary.
Why should you NOT be a Loan Liar
Of course, the number one reason to NOT be a loan liar is because it is illegal. Some people don’t care one whit, however, about legalities. That is OK, though, because there are other equally compelling reasons. Consider why you want to get a loan in the first place: to get approved for credit or to get approved for a higher amount of credit. You could be digging yourself into a deeper hole. Suppose you do get that credit or higher limit, now what? How will you make your payments and what do you have at stake that you could lose? If you lied to obtain a mortgage, you could lose your home. Think about it and consider the ramifications before telling that tale.
What Impact do Loan Liars have on Overall Debt?
Loan liars play a large part in incurring overall debt, meaning loans that are not repaid. Large overall debt contributes to higher interest rates for everyone. If you are a part of the problem by contributing to the overall debt, you are part of the reason that interest rates increase. Do you want to be a part of the problem or a part of the solution? It is up to you.
How do you get caught?
More and more companies are catching loan liars before they can do any real damage. How do they do it? Lenders are working together and sharing information with each other and this is making it much easier to catch loan liars. They are using loan data sharing services that catch the loan liars before they are accepted.
Bottom line, it is just not a good idea to lie on a loan. If you do get away with it, you will likely not be able to afford it. If you don’t get away with it, you could face legal problems. It is a no win situation. Play it safe and just tell the truth.
Heres a basic scenario thats repeated around the country every day:
You have been renting an apartment for more than a decade. The walls are cracked, the flooring is hideous, and the heater tends to quit working at the most inopportune moments. Black mold has invaded the crevices of your bathtub tile, and you’re not sure whats growing in the corner of your closet floor amidst the dirty shag carpet. However, your landlord has made it perfectly clear that she will not invest money in cosmetic changes or repairs, nor will she allow you to do so on your own.
As a result, you desperately want to move out and stop the renting cycle; however, you are faced with what seems to be a big problem. You work out of your apartment as a self-employed performer. Though you have been able to eke out a living in this artistic field, you don’t exactly have pay stubs and have to declare income on your annual taxes. So how can you entice a financial institution to loan you the amount needed to buy your own place
This scenario may sound a bit on the dire side, but its actually quite common and can be overcome thanks to self certification loans
Self certification loans are perfect for anyone looking to own his or her own digs, but who is self-employed and therefore without annual income verification from a third-party. Self certification loans allow for those who work for themselves to essentially self declare how much they’ll make annually or how much they expect to make; thus, they don’t need any official pay stubs for a bank or lender to seriously look at them as a borrower.
Of course, some self-employed persons choosing self certification loans do opt to ask for the assistance of a professional accountant or financial planner. This can be money wisely spent, by the way! The accountant or financial planner can basically verify that the borrower is going to most likely make a certain amount of money per year; having a second verifier enables the lending institution to be more confident in issuing self certification loans.
Yes, self certification loans do carry with them higher-than-usual interest rates, but thats understandable. Because the customer is essentially on the hon our system, the financial institution is taking a bit of a risk with self certification loans. Consequently, with risk come higher interest rates.
However, most persons who enjoy borrowing with self certification loans aren’t deterred by the interest rates associated with the self certification loans. They are simply elated to be able to finally own their dream home, apartment, condo, townhouse, or other dwelling!
No, self certification loans aren’t for everyone… but they just might be the perfect solution for you. Why not check out self certification loans today The time has never been better, and interest rates are lower than they’ve been in years, thanks to international competition for borrowers. Get on board with self certification loans and become the homeowner youve always wanted to be.
Deciding to file for bankruptcy is never an easy choice to make. You must first weigh the pros and cons, and determine what type of bankruptcy you can file.
There are two major ways to file bankruptcy and you should know that it is not an easy process. You can do it on your own if you understand the laws and the two different types of bankruptcy you can file. First there is chapter 7; chapter 7 bankruptcy is the conversion of assets into money. This allows you to payoff debts quickly. With chapter 7 bankruptcy you sell your assets to pay your creditors and within a few months you have charge offs on your credit. Chapter 13 is the next method used to file bankruptcy in the United States. Chapter 13 is the repayment plan with little or no interest. This means that you file chapter 13 with the courts, then all of your debts are compiled and you are set up on a repayment of those debts to take place each month until it is paid off. This is the advised way to go if you have a steady job but just cannot make all your monthly payments.
When considering both of these options you may be overwhelmed by what is best for you and your situation. The best advice is to seek out legal council that can assist you in determining which type of bankruptcy you should file as well as help you with filing the papers with the courts.
When it comes to choosing an attorney to represent you in your bankruptcy case you want to ask some important questions to aid you in your decision. Do not consider fees and payment prices alone, as you should focus on other factors that are just as important if not more important.
Important Questions To Ask
Ask each attorney you speak with how long they have been in practice and what level is their experience as an attorney. Ask for the attorney’s qualifications and what areas they specialize in. Asking about fees and payments is also needed for your choice in choosing your bankruptcy attorney. Also ask yourself some questions. Questions such as does the attorney seem competent? Is his office staff organized and punctual? If you are able ask some questions about the attorneys client relationships. Law does prohibit an attorney from speaking about clients unless he has been given the permission from the client. These questions can allow you to make a solid choice on who will represent you.
Comfort And Confidence
When meeting with your attorney does he or she seem to be considerate of your concerns? Do you feel comfortable speaking to your attorney about all aspects of your bankruptcy decision? Do you personally feel confident that your attorney will be able to perform all his or her duties in your bankruptcy case? If you feel discomfort of any kind you may want to continue reviewing possible attorneys for your case. You have to feel safe enough to put your financial concerns in the hands of your attorney. This will allow the process of bankruptcy to be much less uncomfortable and to proceed much more fluidly for a positive experience.
To eliminate credit card debt is amongst the best thing you can achieve for your finances. Getting into debt is very simple, but getting out of debt is a lot harder. Though it may be difficult, eliminating credit card debt can be possible with the right type of help.
If you have a minimally sized debt you can combine your balances onto one card that offers a limited time period of no interest. If your credit rating is good then there are many firms who will give you this option. Most credit card companies do such an introduction that usually lasts anywhere from 6 months to one year. You should have plenty of time to get rid of your debt by paying off the debt and not any interest or other charges, dependent of course on the size of your balance. However, if you have large credit card debt then this may cause more problems when the zero percent interest period is finished and interest starts to be charged.
With bigger balances you can either get a home equity loan or invest in credit counseling. A home equity lone can only help you when the balance is large and you are unable to avoid interest rates on your card. With a home equity loan you can get a lower interest rate by dealing with a bank and pay the card balance off totally. However, if this is not manageable then you should use credit counseling or a credit eliminating company. The credit counselors can negotiate lower monthly repayments with the credit card firm and make sure all your money goes to pay the debt only and not any interest. Only use credit-eliminating companies as a final dire option and for very severe circumstances. They will work for you to negotiate with card firms to write off your debts without any payments.
As you are now aware, there are varied options for debt relief that can help you to eliminate any credit card debts. If you take the time to phone, do any paperwork, and have the will to do it, you can resolve this type of debt considerably faster than by simply paying the bare minimum as required on your credit card bill.
Secured loans are a type of loan agreement whereby the security is based on something with value, such as the equity in your home. Secured loans are designed to be more secure and less risky for the lender, just in case for some reason you fail to make your loan repayments. If the loan is never paid off completely, the lender may in the worst case scenario sell off your property in order to recover the outstanding amount of the money borrowed. Because secured loans are designed to protect the lender, it does not necessarily mean they are not beneficial to you also if you can offer the collateral that is required to successfully apply for one.
When it comes to a secured loan, you can generally expect to receive a much lower interest rate than unsecured loans because the lender is not dealing with such a large risk by lending to you. Because the lender is dealing with less of a risk, larger loan amounts with smaller interest rates can generally be offered to you, and the lender does not have to worry so much about not being paid back.
The only risk involved with a secured loan for you is not being able to keep up with repayments, as the collateral you provided can be lost if the lender has to take matters into their own hands to recover their funds. If you are having trouble making payments you should make arrangements directly with the lender for repayment of the loan before the lender has to repossess and resell your property.
Choosing A Secured Loan
Are you weighing up your options for a loan, and have decided somewhere along the line that a secured loan is the best option for your situation? Unfortunately, you still have some decisions to make because there are many different types of secured loans available to you, and it is important to find the one that will best suit your needs without harming you with exorbitant monthly payments or interest rates. With so many different varieties of secured loans, it can be difficult to figure out which is best. Here are a few questions to ask while looking for the right loan:
1) How much money are you looking to borrow?
2) How much time do you want or need to repay the loan in its entirety?
3) How much money can you afford to pay toward your loan per month?
4) Do you want a fixed, or a variable rate loan?
Once these questions have been answered, you will be better prepared when searching for the right secured loan. When securing a loan against your property, there are two things that come into play: the equity in your home to be used as collateral and your credit rating. As long as you have something to put up for collateral and your credit rating is adequate, you should not have any trouble obtaining the secured loan that you are looking for.
There are a variety of different places to turn to acquire a loan. The first is your local high Street bank, which is probably going to be your most comfortable option since you may already have a relationship with them. You may also consider visiting a high-street credit broker or online comparison website: these two resources can find you a loan or advise you on where to get one. They can shop around various lenders and banks to see which offers you the widest variety of options and lowest secured loan rates available..
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