Archive for July, 2008
Wednesday, July 16th, 2008
 According the US Bureau of Economic analysis, the savings rate of common households have not been this low since the “great depression.” This is a sure sign many Americans are living beyond there means. If a emergency comes up like a loss of job or illness they will be a financial blow to them due to a lack of savings.
If you are worried about your financial situation there is no better time than now to start evaluating your situation. In this article we are going to discuss some telltale signs of living beyond your means.
Sign 1: Your credit score is below 600.
The credit bureaus keep track of your payment history to your creditors. This information is used to generate your credit score also know as fico scores. Credit scores typically range between 300 and 850. The higher your credit score the better terms on loans you get. Typically when your credit score is below 600 you are living beyond your means.
Sign 2: Your credit card balances are increasing
If you are only paying the minimum payment on your credit card balances then you are more than likely living beyond your means. You really should not charge more on a credit card than you can afford to pay off that same month. If you are charging more on a card than you can pay off soon, then you are living beyond your means.
Sign 3: You are saving less than 5% of you earnings
If you are saving less than 5 % you are in danger of having financial problems if someone in you family has a medical emergency. According to the Bureau of Economic Analysis the saving rate starting in 2005 until now has not been the low since 1933. This was during the great depression.
Sign 4: Your bills are getting out of control
Buying stuff on credit has become America’s favorite pastime. Once you rack up a bunch of credit card because you bought a new TV, furniture, stereos, etc….., you may find yourself in trouble. All of this debt adds up quick and bankruptcy could be on the horizon.
Sign 5: More than 32% of your income goes to your house payment
Most lenders like to see your payment to income around this percentage. Some like to see it around 28%, but this percentage is real conservative.
Bottom-line is tour country is in trouble with debt. If you see a problem the best thing to do is recognize there is a problem first. The second step is to stop spending and pay off your debt. If you charge on credit pay it off that month. Stay on top of your credit health and don’t live beyond your means.
CreditScoreQuick.com
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Tuesday, July 15th, 2008
 Most people don’t realize how easy it is for someone to steal your identity without breaking into your home. In public places criminals may engage in what they call shoulder surfing, watching at a nearby location as you punch in your telephone calling card or a credit card number. They may also listen in on a conversation as you give a credit card number over the telephone to a rental company or hotel.
The area near your home or office may not be safe. Criminals can engage in what they call “Dumpster Diving” and go through you trash, communal dumpster to obtain checking account numbers, credit card applications, and bank statements. These types of documents make it easy for criminals to steal your identity.
If you receive pre-approved credit card applications in the mail and disregard them without shredding them, identity thieves will try to activate them without your knowledge. Some credit card companies require credit cards once approved to be activated from your home phone, but this practice is not universal yet. Also if you mail is sent to a place where it can be easily accessed a identity thief may redirect that mail somewhere else.
During recent years the internet has been a target of identity theft. Criminals try to get personal information by spamming people and requesting personal information posing as a bank. They also sent e-mails offering some service that really is not present.
With enough of you personal information a identity thief can take over your identity and wreck your life. They can drain your banks accounts, saving accounts, charge up your credit cards, apply for new credit, and file bankruptcy in your own name. This is serious business. This will also destroy your free credit reports and good name.
CreditScoreQuick.com
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Tuesday, July 15th, 2008
Q:
Thanks Mike! Appreciate your reply. Are you familiar with the types of deals homeowners are making with lenders these days? Our next step will probably be to meet with a local RE attorney, but am curious what you’ve seen in your experience. Oh, and I would prefer to work with a for-profit repair specialist. I’ve read derogatory things about free agencies that actually represent creditors rather than those being counseled. What are your thoughts on that as well?
Appreciate your time!
A:
Sometimes the banks will make a payment plan you can afford. I would call them and find out what your options are. For credit repair, our blog gives FREE credit repair advice. There is not need to pay anyone for credit repair. Being that I am a experience lender and help people all the time, I have put my experience based on FACTS within my Blog. There are all kinds of tips and Faqs on how to repair your credit. Let me know if you have anymore questions.
Mike Clover
CreditScoreQuick.com
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Tuesday, July 15th, 2008
 In the current market getting your house refinanced could be challenging. With all the new credit report and credit score requirements it might be tough to get it done. Sometimes it is necessary to refinance depending on the terms of your current loan. Here are some tips on whether refinancing your home is right for you.
· Check your free credit reports
With the access for free credit reports on the web go ahead and pull a recent copy of your credit report to see where your credit scores stand. This will allow you to be prepared for what ever a lender throws at you.
· How long will you stay in your home?
When you refinance your home there are lots of third party costs involved. When all the costs involved it will take a while to recoup the cost for the refinance. Typically you need to stay in your home at least 10 years in the “Rule of Thumb.” If you are not staying in your home for at least 10 years, it may not be worth refinancing.
· Lower your interest rate.
When you decide to refinance your home you should be able to lower your interest rate a minimum of 1.5%. I recommend 2%, but 1.5% will work as well. Otherwise refinancing your home is not worth the cost involved.
· Equity in your home
During the finance process you need the equity to roll in the closing costs. If you don’t have the equity to refinance, then you have to pay the cost out of pocket. So you might get with your lender to make sure you have the equity to refinance to begin with.
· Will you qualify for a loan?
With all the changes in the current lending market, the loan programs that were once available might be gone now. So if you require some type of creative financing, like limited doc loans you could have issues getting it done. Get with a reputable mortgage loan lender to see where you stand.
· Refinance at the first of the year.
When you refinance your home you should do so at the first of the year. The reason is the mortgage lender will only have to collect taxes on the refinance for the first of the year. The later during the year refinance the more the lender will be required to collect in taxes. This ultimately will drive up the cost of the refinance the longer you wait. So make sure you refinance your home between January and March.
About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness
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Monday, July 14th, 2008
Hi Mike,
I see that you guys are in the lending business or have had experience. All of these banks going under are a big concern to me. I have been working on my credit report for the last 12 months. I have actually used some of your great free credit repair articles to assist me with improving my credit report. I have been doing this to achieve a goal, and that goal is to buy a house. It looks like Freddie and Fannie will be helped by the government. What does this mean for someone like me who does not have perfect credit?
Chris Tuttle
Hi Chris,
More people are concerned about the liquidity problem than you can imagine. It is scary when big banks go out of business. This happened in the 80’s as well. What is going to happen, is the banks will continue to tighten up on there guidelines to issue loans. I am sure there will be a lot more banks going out of business. What does this mean for you? This is a great time to save money and work on your credit report, just like you are doing. Not sure what is going on with your credit, but if you have read my articles they will tell you exactly what to do. Remember there is FHA loans still, and it has not changed much since all of this has been going on. FHA works with bad credit to help you get into a house. Good luck.
Mike Clover
Posted in free credit score reports | 1 Comment »
Monday, July 14th, 2008
 In America we have the freedom to choose. The possibilities are un-limited. The one thing I think people forget to do is save for retirement. In all honesty most people are never taught to save. I believe being taught to save ties to proper money management.
Money management leads to less credit problems. Starting young on your nest egg will allow you to retire earlier. So in this article I am going to give some tips on saving for the golden years. If you don’t save and expect to live on social security, you might find yourself doing without.
Step one: Open a savings account
Determine what you can afford to save with each paycheck. My advice would be to start saving a minimum of 5% of each paycheck. Once you have determined how much you can save open a saving account that pays a little interest and has no fees.
Step two: Invest money in the Stock Market
Once you have about six months salary in your savings, at that time you are ready to start investing in the stock market. The stock market has proven over time to be the best way to double your money using the “Rule of 72” So if you divide the 72 by the rate of return you are getting on your investment, it will tell you how long it will take to double your money. For example:
Interest rate: 9%
Amount invested: $52,000
72/9 = 8 years
In eight years you would have approximately $104,000
You can see how investing and getting a return in crucial for retirement.
Step three: Select a good investment Broker
There are lots of investment brokers. Find out what there fees are. I would shop a around and find an investment broker that has less fees along with some good references. A good company this is conservative might be Edward Jones.
Step four: Manage your money
Since having good credit is a way of life these days, make sure you stay on top of your credit. Its does no good to save if someone is stealing your credit from you. Make sure you pull a copy of your free credit score report regularly to stay on top of your credit scores. With good credit scores you will save on your loans terms. You will also know if someone has stolen your personal information. Property credit worthiness management is part of this entire process.
CreditScoreQuick.com
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Monday, July 14th, 2008
Everyone’s goal I believe is to have financial freedom. We all are striving to retire someday. There are some steps in life we need to take to get there. In this article I wanted to discuss some very important measures needed to get the security in place for you. There all kinds of caveats like identity theft, your credit scores, interest rates, and terms on loans that could interfere with you saving for the golden years. Learn how to proper manage these items so you can save and avoid pitfalls.
With the internet revolution buying stuff on the internet is pretty simple and secure these days. The access to your personal information may not be secure. There are some steps we need to take during this era so we don’t have issues. Remember the goal is to feel secure with our nice little nest egg.
Step 1: manage your free credit reports
The government has stepped in and required the credit bureaus to provide you with a free credit report once a year. Is this good enough? No, you need to pull your credit report at least every 4 months. That way if someone is using your credit or credit cards, you will find out before it’s too late.
Step 2: Set up credit report monitoring
While you are pulling your credit report make sure you set up credit monitoring. With identity theft being the biggest crime ever, you cannot afford to wonder whether someone is using your credit. There are too many opportunities for identity thieves to get your information. Protect yourself today.
Step 3: Don’t open e-mails you don’t recognize
While you are saving as much as you can the last thing you want is someone to send you an e-mail posing as your bank. If someone sends you an e-mail asking for personal information, immediately delete it. I would recommend installing spam software so you don’t get junk and identity theft e-mails.
Step 4: Manage your creditworthiness
If you implement the steps mentioned, you should be able to get the best rates and terms on loans. This in return will save you money in the long run. Saving money in the long run will allow you to save more money for retirement.
So this proper credit management is really a way of life these days. We have to stay on top of our credit just to make sure that we are not getting ripped of by identity thieves, and to make sure we don’t get charged high interest rates on money borrowed. By implementing all of this you are one step closer to enjoying the golden years.
CreditScoreQuick.com
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Sunday, July 13th, 2008
When a lender determines your credit risk, yes they pull your credit report along with your credit scores. This is the first step in the qualifying process. There is also other attributes lenders look at as well. In this article I wanted to discuss some other factors that are important in the decision making process with lenders.
Job history
Having good work history is considered stability. If you are someone that jumps from job to job, this could affect the decision process on getting a loan. In some instances good job history could be considered a compensating factor when other areas of your overall credit picture may not look too good. Underwriters also like to see at least 2 years work history to buy a house. If you have gone to college and graduated, and now have full time employment, the time you were in college can be counted as work history with some loan programs.
Rental or Mortgage history
Typically lenders like to see at least 12 month good rental history. This shows you may have the ability to handle a mortgage payment or any other obligation. Some creditors like to see that you also own vs. renting. All of this just shows your ability to handle debt.
Have a checking account or savings.
Creditors also like to see that you have a checking account. This way they can see what you are doing with your money. Lenders like to see that you have the ability to save money. Here are acceptable forms of savings.
· 401k
· Stocks
· Mutual Funds
· Annuity
· Money Markets
· Regular savings account
Savings in the eyes of lenders is a plus. This not only shows that you have the ability to save, but if something comes up you can continue to pay your obligations.
Full time employment
Lenders like to see that you are working full time. They want to see some consistency in the hours you are working. If you are part-time and don’t a history with this employer, they might deny the loan due to lack of work history.
How many dependents
Some government loans take in account how many dependents you have. This could cause you not to get approved depending on your number of dependents and income. This loan is called V.A loans.
How much debt you have
Your income to debt ratio is a big factor in the qualifying process. If you apply for a loan and are overwhelmed with debt, you may not qualify. You should keep your debt as low as possible.
CreditScoreQuick.com
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Sunday, July 13th, 2008
Current reports show that bankruptcy filings are at an all time high. This is probably due to the fall of the real estate sector, which affects everything. The way the current bankruptcy law is, does it really protect you and is it necessary? I personally don’t think bankruptcy is necessary for individuals. Bankruptcy for one will destroy your credit report and credit scores. There are two types of bankruptcies for individuals, and they are Chapter 7 and Chapter 13. The most common now with the new law in place is Chapter 13. Chapter 13 forces you to pay back a porting of your debts usually over 5 years to a court appointed trustee. With all the creditors currently having records defaults, you would think that some kind of resolution is in order with the actual creditor on your own. This is actually true; you can call and negotiate with your creditors a lesser balance and a payment plan. Plus if you have retirement funds you don’t have to liquidate them. With bankruptcy you do.
Disadvantages of bankruptcy
If you have wracked up a bunch of unsecured debt, you can assure yourself calls all day from creditors if you don’t pay them. Bankruptcy will stop the calls but it does not change the fact that the negative record will be on your credit report for 7 years if it is Chapter 13. If its chapter 7 it will stay on your credit report for 10 years. So depending on what your situation is, I think in most cases bankruptcy is not necessary. If you have found yourself in financial trouble you can call your creditors and negotiate an affordable payment plans on your own. In most cases you can reduce 40 – 60 percent of what you actually owe to credit card companies with a fixed interest rate and low payments. So do you research before you jump into a bankruptcy and pay a bunch of money to an attorney for no good reason.
Advantages of bankruptcy
If you file bankruptcy the phones calls with stop. It will also stop creditors from taking you to court. You have the option under the bankruptcy laws to file every 6 years. Most lawyers will tell you that the bankruptcy laws are in place not to protect you but the creditor. So keep this in mind. If you are able to file chapter 7 bankruptcy, this will liquidate all your debts with no obligation to pay anything back. This chapter bankruptcy is harder to file now due to the income restrictions. So don’t think bankruptcy is the easy way out now, because its not. I personally think the only advantage is it will stop the harassment from creditors.
Just remember you can negotiate with your creditors yourself, and it cost you nothing but your time. You can also get a payment plan in place you can afford. Creditors will typically work with you to determine a budget over a period of time. Remember you owe this debt; the creditor did not rack up the debt for you. The long term affect of bankruptcy is hard on your credit report vs setting up a payment plan with your creditors and getting them to stop the interest.
There are also other options like debt consolidation. This is could be a alternative as well. Look at your options before jumping into anything.
CreditScoreQuick.com
Posted in bankruptcy, debt consolidation, fix bad credit reports free, free credit score reports | 1 Comment »
Sunday, July 13th, 2008
If you are new to the United States because you just arrived from another country, welcome. In this article I wanted to discuss how you can establish credit as a new citizen of the United States. People from all over the world come to the US to pursue the American dream. Some come here to study and then go back to their country. What every your situation is, as long as you have a social security number I can help you establish credit scores. When arriving to America the first thing you need to do is get your credit established. Here are tips to get this going.
Rental & Utilities
I would hope by now you have a job, so you can show someone that you are paying some sort of rent. Rental is part of the credit building process. Credit Card companies and banks want to see that you are paying rent to someone. This also allows you to get your utilities in your name. Paying your light bill, electric bill, and phone bills are part of the credit building process. Make sure you pay all these bills on-time.
Work History
Make sure you have work history. Obviously if you are applying for some type of credit the creditor wants to see that you are working to pay back any debt owed.
Open a checking account
Having a checking account is a standard question on loan applications. This shows the creditor you might be responsible with you money.
Open a savings account
Having a savings account shows that you have the ability to save incase a emergency should arrive. Most creditors like to see this in place.
Apply for a secured credit card
There is no quicker way to establish credit scores than with a secured credit card. These types of cards require a deposit by you in designated account by the card issuer. Typically the balanced required by you is anywhere between $250 and $350. Once you have secured a credit card, this begins the credit building process on your credit report. Typically I recommend 2 cards to get the credit score building process underway.
Student Credit Cards
If you are here studying you should apply for a student credit card also. This card is much easier to get if you are in college. This card does not require a deposit, but is considered a sub-prime card with higher interest rates. This card is a great way to get your credit established as well.
After six months of paying on a couple credit cards with no late payments you will be scored on your credit report. You might also consider getting a small car loan as well. The credit scoring process likes to see a mix of credit reporting on your credit report. This process mentioned will get your credit underway fairly quickly. Remember to be responsible with your new credit and never be late on anything.
About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness
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Disclaimer: This information has been compiled and provided by CreditScoreQuick.com as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.
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According the US Bureau of Economic analysis, the savings rate of common households have not been this low since the “great depression.” This is a sure sign many Americans are living beyond there means. If a emergency comes up like a loss of job or illness they will be a financial blow to them due to a lack of savings.
