•Social Lending an Alternative to Credit Cards
For years, credit card issuers aggressively pursued new borrowers and urged old borrowers to charge more. Mailboxes across the country were filled with new offers, introductory rates, and rewards for getting those cards out of wallets and into use.
Each issuer tried to outdo the other with promises of low rates on balance transfers and ever higher credit limits. Then, the financial crisis reared its ugly head and those card issuers began to face larger and larger losses.
The past few months...
•An Urgent Reason to Check Your Credit Report
Credit Card processor Heartland Payment systems recently revealed that cyber thieves had gained access to its system last year - stealing names, card numbers, and expiration dates.
Since Heartland processes about 100 million payment transactions per month for 175,000 merchants, the chance that you've been affected is good, if you ever use your credit cards.
Heartland's president and CEO Robert Baldwin says the company plans to notify every card holder who was affected - once the final count...
•Why Banks Have Been Extending More Credit Even as they Clamp Down
While credit scores have been dropping, even for consumers with perfect payment histories, and banks are refusing to lend based on those lower credit scores, the amount of money being lent still increased in 2008.
How can that be?
Both consumers and businesses have been tapping into sources the banks did not expect them to use: previously issued lines of credit.
Commercial borrowers that financed themselves through securities markets had purchased and paid for back up lines of credit. Now,...
•Identity Theft Can Steal Your Good Credit Scores, and Your Reputation
With credit scores more important than ever, more and more thieves are turning to identity theft to allow them to do and have the things they want to do and have. And these thieves are bold in their approach to getting their hands on your identity.
Once they have a few details like your social security number, date of birth, and address, they can proceed to create their own new identities - as you.
The worst part is, because they'll change your address on any credit card accounts you haven't...
•High Credit Scores Create Happy New Homeowners
Your high credit scores today are the ticket to happy and satisfied homeownership tomorrow!
With foreclosures and short sales driving down the price of both pre-owned homes and newly constructed homes - and with interest rates at historically low levels, a high credit score can be your newly paved path to the "American Dream."
4th quarter 2008 figures are coming in now - and while the news is sad for homeowners hoping to sell, it's good for those seeking to buy. The number of homes selling...
•Cheating on your taxes could cheat you out of a loan.
There are some advantages of being self employed, you can write off quite a bit to avoid paying the IRS. You can also find yourself in trouble with the IRS because you were writing off items that may not have existed or just was flat wrong. I am sure if the IRS investigated every self employed individual, the American deficit would probably disappear due to back taxes being owed.
A couple of years ago getting loans for individuals that did not show much taxable income on there tax returns was...
•New FICO Credit Scoring System Could Help or Hurt You
Fair Isaac has announced a 2009 makeover to the credit scoring system that most companies use to determine your credit worthiness. The company says as many as half of all borrowers will see their scores go up or down by about 20 points as a result.
One bit of good news is that an occasional missed payment will not carry the detrimental weight it once did. They'll be looking more at history and patterns of financial behavior.
Another change will see the amount of balances a consumer carries...
•What Credit Score Do You Need to Buy a New Car?
? While many banks have failed to pass "bailout" gains to consumers, GMAC is using its $5 billion to get car sales moving.
After receiving these funds, GM immediately offered 0% financing for up to 60 months on many of its least popular models. Other loans offered carried rates ranging from 0.9% to 5.9% on dozens of other models - and lowered the required credit score from 700 to 621.
Under the terms of a new agreement between GM and GMAC, which is to be finalized by December 24, 2013, GM...
•The Credit Crunch: How did it Happen?
? The credit crunch didn't happen overnight, and many factors contributed, but one of the most visible reasons for financial collapse is the housing market.
We all know now that low teaser rates were offered to buyers who could barely make payments at 1% - and thus lost their homes to foreclosure when the introductory period ended and their rates escalated to 8%, 9%, and in some cases double digits.
Some of those borrowers were further dismayed to learn that the interest they hadn't been...
•Average Consumers: FICO score too low for good rates
Your FICO score determines the interest rate you'll pay for a home mortgage or a car loan - the higher the score, the better the rate offered. But the minimum score to obtain the best rates has gone up, while the average consumer's score has remained static.
According to John Ulzehimer of Credit.com, the average credit score is 690. Not long ago, consumers only had a short jump - to 720 - to receive the best interest rates. Many could accomplish that by removing errors and making a few...
•FHA loans below 580 credit score
If you have a credit score below a 580 it might be extremely hard to get a FHA loan in this current lending market. But there are other options when it comes to getting government loan. Even though FHA will insure loans below a 580 credit score the secondary market that buys and sells mortgage paper has set the stage as to what will be bought and sold in this market.
When loans are bought and sold in the secondary market, investors watch a particular borrower's performance. If they notice a...
•Your new car and Your Credit Score
One very good reason to get a copy of your credit report and begin working to get your credit score as high as possible is the difference in interest rates you'll pay if you need to buy a new car.
Research shows that a borrower with a score under 600 will pay over 18% for a car loan - while a borrower with a score over 720 will pay only 6 5/8%. As you might expect, the difference in the payments is staggering.
Rates for borrowers with scores between those ends pay less interest as their...
•Get Your Free Credit Report - Find Out What Everyone Else Knows About You
It really is kind of scary to realize that strangers can pull your credit report and thus access your credit history - and that they use it to create a picture of your life.
All they need is your social security number - and that isn't hard to get any more.
From that they can determine many things to some degree of accuracy.
For instance, they'll see how many different addresses you've used over the past 7 years, how many new accounts you've opened, how many times you've gone shopping for...
•Pay Your Debts to Raise Your Credit Score
Sounds simplistic, doesn't it? Just pay down your debts, your credit score will raise, and all will be fine. But if you're in debt, there's probably a reason - such as spending in excess of your income.
If you want to build a good financial reputation - otherwise known as a good FICO score - you'll have to make the effort to bring your spending in line with your income.
You have two simple choices, and they should be used in combination with each other: - Earn more and use the extra to pay...
•FICO Demystified
Your lender rattles off the term as if everyone knew exactly what FICO meant. But most of us don't even know what the letters stand for.
The first part is simple: The Fair Isaac Corporation. Sounds mysterious, doesn't it? What the heck is a Fair Isaac? Nothing. It just happens to be the names of the men who started the company.
In 1956, engineer Bill fair and Mathematician Earl Isaac joined forces to create what was originally a consulting and decision management service. Then in 1981 they...
•Good Credit Saves You Money in More Ways than One
When you think of needing a good credit score, the first thing that comes to mind is buying a home. Next is buying a car, and third is probably the ability to get a credit card.
It's true, a good score will help you in all those areas. Not only will it make you eligible for a home, a car, or a new credit card, it will mean that you will be granted a lower interest rate than someone with poor credit. Your buying power will be larger, because less of your money will be drained off to pay...
•Your credit score may just been lowered
If your credit score was just lowered, how would you find out? There are so many avenues now to get your credit report it's actually pretty easy. But what if it actually was lowered to the point that it would really cost you on loans? This is where the constant stream of information is flowing about how important your credit score is these days. A credit score is so powerful these days that it has become the driving force of the lending industry. When it comes right down to it, all of this is...
•Parents! You Must Home School Your Children
No, I don't mean you need to teach them grammar, math and geography. You can leave those subjects up to the school system and hopefully they'll learn what they need to know with just a little help from you at homework time.
I'm talking about a subject that will have far more impact on their lives than knowing the capital of Montana, or the proper conjugation of a verb. I'm talking about money management. This is a subject schools should, but don't address.
Start when your kids are old enough...
•What First Time Home Buyers Need to know
The hard way always seems to be the better way. I have been told there are two ways to do things in life, "The hard way and the easy way." I think most want to do things the hard way. When it comes to buying a house for the first time, there is process to follow so your buying experience is not done the hard way. The easy way may not seem the best way in the eyes of a buyer, but I assure you it's the correct process. I have seen more problems with mortgage loans following apart because someone...
•Avoid a low Credit Score.
With your Credit Score being the doorway to financial health I thought I would give some tips on what to avoid so your credit score is not affected. If your credit score is currently low I guarantee that you are paying too much to your creditors. Any business that is in business for profit is looking for a reason to make money. If a creditor knows your credit scores are low they will charge you for it. The reason is because they can. Here is what to avoid so your creditworthiness is not...
•Life after a Foreclosure.
Your life during a foreclosure might seem never ending. A foreclosure does affect your credit score report, but the good news is there is life afterwards. If you have fell victim to the Sub-Prim meltdown which caused you to loose your home, I will explain to you how you can recover from this fairly quick. Obviously anytime you have a negative mark on your credit report it will stay on there for 7 years. The positive side is you can implement some good credit management steps to recover.
It...
•Don't think Identity Theft can happen to you - "Think Again"
During the course of the day you may write a check at the grocery store, charge tickets to a concert, mail your tax returns, rent a car, and apply for a new credit card. Your probably don't think twice when you are doing these type of activities. An identity thief is always watching.
Identity theft is a serious crime, and is currently the biggest crime waive ever. People who have their identity stolen can end up taking months, years and thousands of dollars trying to recover their identity....
•When should you check your credit score report?
? There is a lot of debate out there on when you should check your credit score report. I am sure you have read that you can get your credit report for FREE at www.annualcreditreport.com. Yes you can, but you get it once a year for free with no credit scores. It is worth paying around $29.95 to get your credit scores along with your credit report. The reason is when lenders make there decision process your scores are part of that process. In the current credit report market you can get your...
•How a Co-signer can affect your Credit Report
Do you want your credit score to plummet, go ahead and co-sign for someone. I personally believe this is a huge problem. With your credit score and credit report being the roadmap to financial health, the question is can you really afford to co-sign for friends and family. Over the years I have seen more problems with this issue. Here is how a co-signer can affect your personal credit.
Late Payments If you co-sign for a family member your credit report could be at risk. If for some reason the...
•How no Credit can hurt you
What is all the fuss about paying cash for everything? Isn't that a good thing? If you pay cash for everything doesn't that mean you don't owe anybody? Quite contrary to popular belief this actually hurts you. Let's assume you pay cash for everything and all the sudden need a loan, it will be hard to get a loan with no credit. You will have not any credit scores generated with the credit bureaus with no credit being extending to you. I have heard quite often that I pay cash for everything...
•Common Credit Report mistakes
Your credit report is not something to be taken lightly these days. It is almost as important as your social security card. There will come a time where your credit report will be required for credit purposes. We see credit reports on a daily basis, and there typically are issues with that individual's credit report that was not known. This is all too common due to a lack of staying on top of your personal credit report. Here are some common issues we see that cause loans to get denied....
•Free Credit Repair
To repair bad credit might be a mystery to most, but the process is actually quite simple. With all the bad credit out there, you would think there must be something in the water. I know there are different circumstances that cause people to get into trouble, but the mystery to get out of trouble just baffles everyone. Since I have been in the mortgage industry, I have learned how easy it is to fix your credit report. With the power of the internet you can fix your credit for free. I remember...
•Why FHA- with your Credit Score
Did you know FHA loans has been around since 1935? That is pretty amazing if you think about it, this type of loan has been around since right after the "Great Depression." Also a added benefit of FHA is that it does not have credit score requirements. With the current lending market and tighten up on credit scores it makes perfect since to look at a FHA loan. Depending on where you are going to buy will determine the max loan amount you can get with FHA. Yes, FHA loans have loan limits. Here...
•Get Credit Report information and credit questions on-line
Your credit report is accessible 24/7 on the internet in a few clicks. Equifax just released how the internet is a great resource fore accessing anything about your credit. The internet is amazing in regards to how you can get the information you need to fix just about anything. You can get recipes, commons household items, cars, credit cards, insurance, mortgages, or any common question answered. The internet is so powerful that you could actually stay home and never leave using the internet...
•Credit Report affected by un-paid utility bills.
Your credit score report can be affect by more than your available credit history. We talk about how credit cards, mortgages, car loans, and any type of loan that reports to all 3 credit bureaus will affect your credit score. We don't always talk about utility companies and how they can have a negative impact on your credit report. Here are utility companies I like to consider non-creditors. In other words these companies don't give you a line credit, they just provide a service.
Utility...
•Foreclosure Crisis - Learn what Lenders don't want you to know
Did you know most of the foreclosures taking place now could have been avoided? With all the foreclosures taking place because of adjustable rate mortgages (ARM's), this could have been avoided if the lender had put families in a 30yr fixed mortgage. During the real estate boom, individuals that had less than perfect credit were put into sub-prime loans. There were millions of families put into sub-prime loans that had the qualifications to go FHA, which is a 30 yr fixed mortgage. The reason...
•Top Tips to help you secure a mortgage loan
The American dream is to own a home someday. We all have this passion deep down in side. Most Americans don't have the money to pay cash, so they turn to lender to assist with the purchase of there first or second home. With all the new guidelines in banking I will give you exactly what you need to do to secure a mortgage. I know everyone's situation is different, but there are some steps you can take so you will not have problems in today's lending market. This will also help you regardless...
•Credit Report after a Bankruptcy
Your credit report after a bankruptcy will look like a bomb was dropped on it. Your credit score report will be littered with all kinds of derogatory information. Depending on what type of bankruptcy you filed will determine how long it will take to re-establish your credit. The two most common bankruptcies are Chapter 7 and Chapter 13. With the new bankruptcy law, more people will be forced to file Chapter 13. Here are the differences.
Chapter 7 bankruptcy- is considered liquidation of your...
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