Month: March 2010

Credit Alert: Bad Credit Can Impact Your Employability

In this tough economy and the number of potential employees competing for jobs, making sure that you have a competitive edge that can help get your foot in the door is becoming more and more important. A number of job applicants don’t realize that their bad credit score can impact whether or not they get a job.

Wall Street Journal recently reported that:

“Some 47% of employers say they check the credit history of applicants for certain positions, according to a survey by the Society for Human Resource Management of more than 430 organizations in late 2009. That’s up from 42% of employers in 2006. Just 25% of employers in 1998 said they regularly or sometimes checked applicants’ credit histories.”

In the case of your credit report, what you don’t know can hurt you. If you are currently in the job market you may want to make sure that you have a clean credit report. If you don’t, you may want to look into credit report repair and learn other ways to help improve your credit.

arrow Read this post

Three Proactive Ways to Prevent Marital Credit Stress

You are deeply in love and planning your fairy tale wedding, but have you taken the time to understand how you will manage credit and finances after the wedding bells have rung? It is common knowledge that over 50% of marriages end in divorce; the number one reason for divorce is financial issues and bad credit.

Discuss with your significant other your credit and financial situation before you get married. You will be glad you did. You can avoid surprises by doing the following:

arrow Read this post

Credit Alert: Credit Scores Are Dropping Due to Signing Up for Mortgage Relief

According to a recent ABC News article, some homeowners are discovering that their credit score is being impacted and even lowered due to their signing up for the Obama administration’s “Making Home Affordable” loan modification program. The concern over the decrease in the credit score is that this happens even when the homeowner is paying their mortgage on time vs. delinquent borrowers showing a decrease to their credit score after they have fallen behind on their loans.

Essentially, the request for the loan modification is reported to each of the credit bureaus. The impact is even greater for those who are not approved for the program, as this mark stays on their reports without a resolution. Those that are accepted have a notification sent to the credit bureaus acknowledging their acceptance and the modification. This does not hurt nor does it improve their credit score.

arrow Read this post

Why Fix Your Credit? Understanding the Cost of Bad Credit

Sure, you understand the importance of paying your bills on time, and you may have a mountain of them, from everyday expenses to long-term debt. If the economy of the last few years has taught us anything, it’s that stability is the foundation of a solid financial stance. Even so, rising costs and plateauing salaries have gotten the best of some in recent months. If you are among the many people who have been hit by financial hardship, now is the time to assess your situation and determine how it affects your future. Cleaning up your credit could save you thousands in the long run.

How Does It Add Up?

The number one reason to clean up credit is future costs. Why spend more money if you don’t have to? Consider someone with a credit score that is below 620 that receives an interest rate of 12.5% for their $300,000 mortgage. This means their mortgage payments would be $3,097 which is approximately $1,114,920 over the life of the loan.

Now consider someone with a credit score of 735 with an interest rate of 6.1%, or $1,800 a month in mortgage payments. This equals out to approximately $653,760 over the life of the loan. Not only does a better credit score save you approximately $1,297 a month, but it will also save nearly $538,840 over the life of a 30 year fixed mortgage loan. As you can see, the drawbacks of a low credit score amount to much more than it can seem.

Test this out on a mortgage or car loan using the calculator available here.

I Want to Fix My Credit: Now What?

If you want to fix your credit score, start right now. Review the items that impact your credit score and look for ways to improve each one. Catalog your monthly bills and sign up for auto-pay if it’s available. Pay down your credit card balances. Pay off a loan all together if you’re able, allowing you to improve your debt to income ratio. Bottom line: be an active participant in the task of cleaning up your credit score and monitoring your progress. It’s never too late to repair past financial pitfalls and reclaim a solid stance.

arrow Read this post

Protecting Your Credit After a Divorce

John Heath - Directing Attorney for Lexington LawWith divorce rates hovering at 50%, approximately 1 out of 2 married persons will face divorce in their lifetime. While many recognize that the divorce process can be at best unpleasant and in some cases lengthy, many do not realize that the divorce may impact their credit reporting and scoring after the divorce has finished.

arrow Read this post