February 19th, 2009
Daniel from New York wrote into CNBC’s “Ask The Experts” feature with the following question:
“Are there ANY credit repair companies that are legit? I’ve used a couple and both times they have been scams. I obviously won’t do it again but people should be aware if they are all trying to rip you off!!”
His concern is valid. There are all too many credit repair clinics out there who are much more interested in separating you from your cash than in helping your credit situation. But the response he received is even more concerning.
In her response to Daniel’s question, Carmen Wong Ulrich host of the program “On the Money” states:
continue reading “Sometimes Even the Experts Get Confused About Credit Repair” »
Posted in Credit Repair
February 4th, 2009
With mortgage rates plummeting, homeowners are flocking to lenders with hopes of refinancing their home loans at a lower interest rate and saving loads of cash in the process. On a $250,000 30 year loan, refinancing from 8% to the record lows in the 5% range that were reported in early January would lower monthly mortgage payments by nearly $500. Over the course of the entire loan, this amounts to over $170,000 worth of savings.
Most people, however, will not be able to qualify for a refinance loan and an even larger percentage will not be able to get approved for the best interest rates.
Having a good credit score simply isn’t good enough when it comes to getting the best rates on a refinancing loan. Most people consider a 720 credit score to be a good score, says Chris Freemott, president of All American Mortgage, but to get the best rates, borrowers will need a credit score of 740 or higher.
continue reading “A Good Credit Score isn’t Good Enough When it Comes to Refinancing your Mortgage” »
Posted in Mortgage
January 13th, 2009
The USA.gov website has a recently updated list of popular New Year’s resolutions. As evidence of how important credit is in today’s society, two of the first three resolutions listed are related to your credit standing.
The top five New Year’s resolutions listed on the page are to lose weight, manage debt, save money, get a better job, and get fit.
If these are among your New Year’s resolutions then it is in your best interest to pay special attention to your credit score in 2009. By increasing your credit score, you may be able to get approved for lower interest rate loans or credit cards. Refinancing your mortgage at a lower interest rate than you are currently paying could end up saving you hundreds of dollars every month which would not only help you achieve your resolution of saving money, but it could give you a great head start on managing your debt.
Add to this that in some cases, a good credit score is required for you to get approved for that new dream job and there’s one more New Year’s resolution where your credit comes into play.
continue reading “Should Credit Repair be one of Your New Year’s Resolutions?” »
Posted in Credit Repair
December 18th, 2008
The US Treasury Department along with the Ad Council recently launched a new credit education website, located at ControlYourCredit.gov, with the goal of helping young adults learn how to make good financial decisions and use credit responsibly.
The website invites visitors to “solve the great mysteries of credit” by checking them into room 250 of the dark and foreboding Bad Credit Hotel that conjures up images of a ’40s film noir mystery movie. In the process of making phone calls on a classic rotary phone, investigating a transforming Rorschach painting, and using clues found on scraps of paper to unlock a hidden safe, visitors find an interactive tool for calculating the cost of interest, information about their credit history, tips for dealing with debt collectors, and more.
While there is nothing revolutionary about the information contained within the ControlYourCredit.gov site, and the absence of any mention of credit reporting errors is unfortunate, the production value alone is worth a visit and only time will tell if this tactic will be effective in helping educate new credit users.
continue reading “ControlYourCredit.gov: An Innovative Take on Learning About Credit” »
Posted in Credit
December 10th, 2008
Especially during the holidays, retailers offer a “No interest and no payments for 12 months!” type sales pitch as a way for you to purchase that must have flat-screen television, bedroom set, or mountain bike without having to put any money down. For those strapped for cash, this seems like a perfect way to get what they want today and then pay for it down the road when, hopefully, their finances are in better shape.
What many people do not realize is that no interest, no payment agreements are frequently not the ideal solutions they may seem. Depending on the retailer and your ability to make timely payments once they come due, these types of agreements may result in you having to pay much more than you intended and can cause serious damage to your credit score.
To start with, even the most financially responsible consumer can see their credit score drop because they took advantage of a no interest, no payment sale. This is because in many cases you are opening a new line of credit with the retailer that, depending on if and how it is reported to the credit bureaus, may increase your credit utilization ratio.
continue reading “Don’t Forget About Your Credit Score When Considering “No Interest, No Payment” Plans” »
Posted in Credit Score