In the world of credit repair, there are a few basic principles:
Don’t neglect your finances
Don’t mistake a credit line for a bank account
Never dip into your retirement savings
When you consider the latter principle, the idea of dipping into your 401(k) plan seems insane, right? That’s what I thought until a recent conversation with a financial planner led me to rethink my position. Despite its inherent risks, there are times when borrowing from your retirement plan can be beneficial. Read on to learn the dos and don’ts of 401(k) borrowing.
While Google searches for the term “credit repair” are declining over time, the topic of credit repair as a whole continues to grow as consumers are getting more specific with their Google search queries.
Since hitting all-time highs in 2008-2009, the volume of consumers searching online in the Consumer Debt Industry has gradually decreased according to Google Trends showing an overall improvement in U.S household debt.
You already know that whenever you decide to buy a new car or new home, lenders use your credit score and credit report to determine whether you are “credit worthy” to receive a loan for that car or home. You also know that that those same credit reports and scores are used to determine your credit worthiness when you apply for a new credit card. What you may not know is that your credit also affects you in other often ways, some of which are profound.
Take insurance for example. Many insurance companies will pull a copy of your credit report to help them determine whether you are a “good risk” to insure your life, your home and/or your automobile. A lower score, delinquent accounts, charge offs or late pays on your credit reports may lead the insurance company to believe that you are not a good risk. This may translate into a higher premium or the inability to get life insurance, auto insurance or homeowner’s insurance.
Lexington Law released a new infographic in support of National Consumer Protection Week, which runs from March 3-9.
Lexington Law released a new infographic today to support National Consumer Protection Week. National Consumer Protection Week is a partnership between The Consumer Financial Protection Bureau and other federal agencies and runs from March 3-9. The goal of this week is to help consumers safely navigate the markets for consumer products and services by sharing tips and information about privacy protection, money and debt management, and the recognition of identity theft, frauds and scams.
Lexington Law’s infographic is part of an ongoing educational awareness effort designed to make learning about consumer rights fun and informative.