Preparing for a mortgage can be a stressful process. The lender wants to see that you have a solid credit history, a low amount of debt, a stable employment history, and enough income to afford the monthly payment on the mortgage you’re looking for. In the months leading up to a home purchase, you’ll be preparing for the mortgage application. It’s wise to focus on your whole financial picture, not just to qualify for a mortgage,...
Numerous businesses use debt collection services to help recoup the cost of unpaid debts. For example, if you cancel your cable service and don’t pay the last month’s bill, your ex-service provider may send you a few bills then send the unpaid bill to a collection agency. Because of debt collector’s bad reputation or perhaps the insignificance of the bill, many consumers often put off paying these collections. Besides personal responsibility, what need do you have...
The past several years have been rough for consumers and credit card issuers. Prior to the Credit CARD Act of 2009, credit card issuers were cutting credit limits without notice, raising interest rates to the default, and charging consumers interest on balances that had already been paid. Fortunately, things are starting to settle and, according to a study from J.D. Power and Associates, consumers are more satisfied with their credit cards than they were six years...
Identity thieves will use any means available to trick you into your giving up your personal information. You may be familiar with phishing scams where scammers email you seemingly legitimate messages from your bank or other business. The email includes frightening language, e.g. your account has been compromised, that bait you into going to a fake website where the scammers capture your password, bank account information, and other personal information. Then, they use whatever information they’ve...
Self-employment can be risky, especially from a financial standpoint. Managing your money is especially important given the potential ups and downs that come with being your own boss. Being smart with your money is critical to longevity in your career as an entrepreneur. Build a substantial safety net before taking the leap. If you’re still employed and know you want to move to self-employment in the future, start stashing some money away now. Save up as...
Every debt instrument has an interest rate, typically expressed as an annual percentage rate, or APR. The interest rate the annual amount you pay for borrowing $100. For example, if your APR is 5%, you’d pay $5 in interest annually for every $100 you borrow. The interest rate isn’t an arbitrary number that banks set up. In fact, you indirectly control the interest you pay when you borrow because your credit score is one of the...
Some people can expect to have a hard time getting approved for new credit cards and loans. You might be one of those people. You have a low credit score. Credit scores are designed to predict the likelihood that you’ll pay back a loan or credit card balance. Since your score is based on your past payment habits, banks trust it. If you have a low credit score, indicating that you haven’t always paid on time,...
Truthfully, a charge-off is one of the worst things that could happen to your credit report and score. Charge-off happens after your account has become 180 days delinquent. By the time a creditor decides to charge-off your account, you’ve been late for six months. All those months of late payments take a tremendous toll on your credit score. But, you may be able to take advantage of a charge-off. Typically, creditors no longer allow you to...
Bankruptcy is hailed as one of the most catastrophic of financial events. Fortunately, it’s not the end of the world. In fact, bankruptcy, in many ways, is more like a new beginning. It’s a time to start over without all, or at least most, of your debt. Of course, starting over means getting new credit and rebuilding your credit score. Your access to credit it limited after filing bankruptcy. You don’t want to spend precious time...
Banks and consumers have a conflict of interest. Consumers want free checking accounts and to pay as little as possible for services. Banks, on the other hand, want to make millions and billions for their shareholders. Your basic checking account may be free, but watch out for services that could cost hundreds of dollars a year. Monthly maintenance fees Most checking accounts are free, but with stipulations. For example, it may be free only if you...
