Posts Tagged ‘money’
Monday, August 3rd, 2009
There are a number of sound financial management options you should know about when paying back your student loans:
Consider the advantages of a loan forgiveness program. These types of programs are readily available to nursing students, medical students and any student willing to enroll in the military. Essentially, you agree to work, or serve, for a period of time in exchange for all or partial loan forgiveness.
Make on-time student loan repayments a regular habit. In some cases lenders may reduce interest fees after you make so many consecutive on-time payments. Also, if you find yourself consistently delinquent, consider a student consolidation loan program. Note: default should never be an option.
Manage your loan repayment using online calculators. Find out quickly and easily how to figure your total loan repayment including interest. Just Google “Online Loan Calculators” and plenty of them will pop up.
The federal government allows a couple of important tax credits: the student loan interest deduction and the Hope Scholarship Credit. Make these two important deductions a regular part of your annual tax preparation.
Tags: forgiveness program, Hope Scholarship Credit, money, on-time, repayments, student loans, tax credit
Posted in Student Loans | No Comments »
Wednesday, July 1st, 2009
Have you been through a bankruptcy? Think you’ll never qualify for credit again?
Well, don’t think like that … of course you’ll be able to get credit (you always will be)! How, you ask? Well, a number of banks offer “secured” credit cards, in which a debtor has to put up a certain amount of money (as little as $100 in some cases) into a separate account at the bank to guarantee payment. Usually the credit limit is equal to the security given, and is slowly increased as the debtor proves his or her credit-worthiness. Two years later, debtors are then eligible for mortgage loans on the same level as those with normal credit (who have never filed for bankruptcy).
The size of your down payment and the stability of your income is much more important than the fact you filed bankruptcy in the past! Although the fact that you filed for bankruptcy will stay on your credit report for 10 years, it will become much less significant the further in the past the bankruptcy date is.
Plus, you’re probably much less of a credit risk after your bankruptcy than before it, when you were struggling to pay all of your growing bills! This should give you some hope for the future. Good luck!
Tags: bankruptcy, Credit Cards, finance, money, rating, secured
Posted in Credit Cards | No Comments »
Friday, May 22nd, 2009
Most Americans have to deal with debt at one point in their lives.
Even if your only debt is in your house and your car, it can still seem too overwhelming. Just know this: debt by itself isn’t always a bad thing, but when it starts spinning out of control, it’ll get harder and harder to crawl out of the hole that you’ve dug for yourself.
Unfortunately, when people get overwhelmed with debt, they often fall directly into a state of blissful denial. They avoid opening credit card statements and they put bills aside when they don’t have enough money to pay. The out-of-sight, out-of-mind trick only works for a few months, however, before life begins to tumble down around these victims of debt. So if you are worried about your debt, you need to start asking yourself the hard questions, and stop ignoring the problems, if you ever want to relieve yourself of it.
Some great questions to ask: “Are my bills being paid on time?” and “Should I consolidate my high-interest bills into one low interest one?” With this knowledge, you can then either choose to go at it alone, with a bit of online research, and hope things turn out for the best, or you can hire a non-profit debt counselor to help you through each step of the way - the choice is ultimately up to you. However, be cautious of the so-called “non-profit” places that are really commercial salesmen looking for your last few pennies (note: they are all over the web).
One last thing you should always keep in mind when it comes to debt is too search high and low for the best credit advice and then use it to help answer these hard questions for you (regardless of whether it comes from an internet search or from a professional credit counselor). Then after you find out that you are similar to many other post-debt consumers, you’ll begin to see that there is a light at the end of the tunnel.
Just remember this: everything that is broken can usually be fixed!
Tags: answers, counselors, Debt Consolidation, loads, money, non-profit, out of control, overwhelmed, questions, research, salesmen
Posted in Debt Consolidation | No Comments »
Friday, May 15th, 2009
There hasn’t been a better time to buy a new car in a long time!
Hundreds of car dealers are closing their doors, and the numbers are rising daily. Now here’s the good news: those that remain open are literally overflowing with inventory, trade-in values are lower than when you bought your last car, lease deals are harder to find and generally less appealing than in the past, and traditional financing is becoming harder and harder to get.
This is the right time to purchase a car. Right now, automakers have pulled the emergency brake on production, working to desperately balance out their inventory with demand. The effect will be to bring down the dealer inventories to sustainable levels, at which point the incentives and willingness to negotiate will be drastically reduced.
Most shoppers would be wise to consider a fuel-efficient car now while discounts are available and gas prices are relatively low; once inventories level out and gas prices rise, finding incentives on thrifty four-cylinder and hybrid models will be much more difficult. Also, resist the temptation to buy an SUV, truck, or other gas-guzzling model on the belief that gas will remain cheap (the reason: there is no basis for such an assumption).
Incredible deals can be found in today’s market, but make sure to make smart choices, and go into the buying process with your eyes wide open.
Tags: auto, buy, car, closing doors, deals, financing, inventory, money, now, production, purchase, time, trade-in values
Posted in Car Loans | No Comments »
Friday, May 8th, 2009
Most new graduates don’t have an established credit rating yet. This is a problem for those who are actually trustworthy individuals, but do not have the credit score to reflect that reality.
To add to the confusion, most debtors are not willing to take a chance on lending money without a good indication of creditworthiness. Although it may not seem fair, this makes perfect sense from the lender’s standpoint. After all, would you honestly take a chance on an unknown borrower when there are millions of other people applying for loans with clear credit standings and strong histories of repayment?
Fortunately, for these young people, there’s an practical method of building a credit history. It begins by applying for a secured credit card (one that reports to credit bureaus). Instead of basing credit limit on credit history, it bases it on a one-time deposit. This card can then be used for staple purchases, such as groceries and utilities, and as long as the individual repays this credit card back in full or at least stays on top of minimum payments, it will reflect positively on a credit history and will make it much easier to be approved for future loans!
The idea of building credit from scratch may seem discouraging to students and recent graduates. However, it must be done in order to have the best chance of growing their credit the right way. If a positive credit history is sought, then a little planning and time can certainly make it happen!
Tags: building, cards, Catch 22, credit, credit rating, graduates, money, students
Posted in Credit Cards | No Comments »
Friday, May 1st, 2009
Raising your FICO credit score is important if you want to get a better rate on future loans, but the process will takes time and there are no quick fixes. In fact, quick fixes are usually detrimental to your score, because they usually backfire eventually. The best advice one could receive is to take your time, and learn the right approach to building credit.
To start improving your credit score, you must make sure you’re paying your bills on time and managing your available credit wisely. The most important item is definitely going to be your mortgage (make sure you pay it on time each and every month). Also note that installment loans (where you borrow a set amount to buy things like new furniture or appliances) are given more weight than credit cards.
A few additional rules to help you boost your score: 1) always keep your borrowing well below your credit limits, because your FICO score will suffer if you are maxed out on your credit cards, 2) never have more than two or three credit cards because a large number of credit cards will also lower your score, and 3) definitely don’t apply for several credit cards at one time; it makes lenders nervous and will lower your FICO score dramatically.
Many other factors will also affect your score, but this is pretty a good start! My advice: do your research and always be prepared — Good Luck!
Tags: boost, borrowing, credit, Credit Cards, FICO score, installment loans, lenders, money, quick fix
Posted in Credit Report | No Comments »
Friday, April 10th, 2009
Every homebuyer has a different set of circumstances, and it is important for their lender to consider those factors. Some homeowners may plan to move in a year or two, and they may be able to benefit from a variable rate mortgage. Others will plan to remain in their home for decades, and those home buyers may benefit from the stability of a fixed-rate mortgage and its predictable and stable monthly payments.
It is also important for those buying a first home to factor in the additional costs of the mortgage, when deciding how much they can afford to pay. Things like closing costs and the high price of private mortgage insurance can drive up costs and eat into funds that would otherwise be available for home improvements, furnishings and other essentials. In some cases, sellers may be willing to pay some of the closing costs, and some lenders will be able to negotiate those closing costs downward. The key is to ask those questions before the closing date arrives, and to be prepared to search for a better deal if necessary.
And of course first time home buyers should not lose sight of the home itself in the quest for the perfect mortgage. Any defects should be pointed out to the seller well before the closing is to take place. The costs of every needed repair should be carefully negotiated prior to the purchase, and buyers should always follow up to make sure that all requested repairs have been made. A home is a major purchase, and it is important to make sure that everything has been taken care of before moving in.
Tags: closing costs, factor, first, home improvements, homebuyer, money, Mortgage
Posted in Home Loans | No Comments »
Friday, March 20th, 2009
There are many car dealers who will claim that they are going to pay off the balance on your current car loan, no matter how much money is still owed on it. However, if you agree to such a deal, you will simply be transferring your remaining balance onto your new car loan (this is a fact). What this means to you: if you’re interested in purchasing a $21,000 car, but you still have $7,500 left on your current car loan, you’ll be taking out a $28,500 loan in order to cover your expenses.
Such a program is not attractive in the long run. You would actually be much better off if you simply waited to pay off your outstanding balance before purchasing a new vehicle. If you simply cannot wait to buy another car, consider one that is much more affordable. Otherwise, you could find yourself falling even farther down the economic ladder into debt hell.
What to do: don’t worry, with some smart strategic planning, you can obtain an auto loan that will leave you in a good financial position in the years ahead. Consider the fact that cars tend to lose their market value quickly, and you’ll be able to better see that a cost-efficient car loan may be one of the best financial decisions you’ll ever make.
Tags: balance, car dealer, car loan, financial decision, market, money, new vehicle, trick
Posted in Car Loans | No Comments »
Tuesday, March 17th, 2009
A bad-credit personal loan can be a powerful tool for accessing fast cash in an emergency!
It can allow you to pay off your credit cards with an even higher interest rate, or help pay for an unexpected financial situation. However, these kinds of can also put you at higher risk for default and mismanagement. In fact, experts recommend that individuals with bad credit take an active part in clearing up their credit first, before considering more high-cost debt.
The key to wisely managing a personal loan with bad credit is to crunch the numbers and determine how quickly you’ll be able to repay that debt. Many borrowers with bad credit only look at how much they can afford to pay back each month, and then borrow the maximum amount while planning to make only the minimum payments. What you really should do is plan to borrow the lowest amount possible for your situation, and then plan to make monthly payments that are a good deal higher than the minimum amount required. The sooner you can pay back a loan when you have bad credit, the better off you will be in the long run.
The first logical step in repairing your credit is to review your credit report and fix everything you can (if for no other reason than to expand your options in the future). Remember: the credit reporting agencies often make mistakes, so a careful review of your report may turn up something that you can easily fix. Tackling the other issues with your credit may take time and patience, but there is no quick fix for improving bad credit.
Tags: bad credit, credit, manage, money, Personal Loans, repair
Posted in Personal Loans | No Comments »
Friday, March 13th, 2009
Bankruptcies can be reported on a credit report for 10 years from the filing of the case! And to top this off, if you file a bankruptcy and then voluntarily dismiss it before the discharge, the credit reporting agency must report the dismissal as well as the bankruptcy filing, which means you’ll have to wait even longer to clear things up.
Now after those long years are behind you, and assuming you now have a decent income, you should be much more creditworthy after a bankruptcy than you were before it, since your old debts no longer have a claim on your future income.
The Fair Credit Reporting Act makes it clear that a debt discharged in bankruptcy must be listed as having a 0 balance. FTC OSC section 607, item 6 states: “A consumer report may include an account that was discharged in bankruptcy (as well as the bankruptcy itself) as long as it reports a zero balance due to reflect the fact that the consumer is no longer liable for the discharged debt.”
After the discharge is complete, you will now be entitled, under federal law, to have the balance of each discharged debt reported as “O”. The history of delinquencies can be reported, however, but the balance must now show as zero. If it is not, dispute the debt (you will win in this case).
Important to remember: negative history on your credit report is just that — history. It does not doom you to everlasting credit rejection, but it should, at least, challenge you to strengthen your financial present by saving and using credit carefully now.
Tags: 0 balance, 10 years, bankruptcy, credit report, Fair Credit Reporting Act, history, money, zero
Posted in Credit Report | No Comments »