Credit Facts in the News Part 8

A very important part of your credit education is staying on top of credit facts in the news. This week we will take a look at things that are happening right now that affect your total financial future. According to The Boston Globe, Congress passed the Credit Cardholders' Bill of Rights Act of 2009 and sent it to President Obama for his signature. This bill amends the Truth in Lending Act and provides consumers with many reforms to the way credit cards are issued and administered today. According to the bill that was passed, here is a summary from the Library of Congress of what it means to consumers:

• Creditors cannot increase the annual percentage rate (APR) during the first 12 months of opening up an account. • Creditors are required to provide consumers with a 45-day advance notice of changes in rates and significant contract changes. Rates that change due to a change in the index that the rate is based on are excluded from this 45-day notice requirement. • Promotional rates need to be in effect for at least six months from the beginning date of that promotion. • Creditors need to provide a 30-day advance notice of an account closure. • With certain exceptions, credit card issuers are prohibited from charging a finance charge based on the double billing cycle method. • Creditors are prohibited from charging a fee on an outstanding credit card balance at the end of the billing period if the fee is attributed to the interest accrued on an outstanding balance that was fully repaid during that preceding billing period. • Consumers have the right to reject a new credit card after the creditor notifies a consumer reporting agency of its corresponding account. • Creditors are required to remove information provided to a consumer reporting agency about newly established credit card accounts if the consumer has not used or activated the account and and if the consumer contacts the creditor within 45 days of its establishment to close it. • If two or more different APRs apply to different portions of an outstanding balance, the amount of any payment above the required minimum payment needs to be applied to the balance with the highest APR first and then to lower APR balances. • Creditors are required to provide a grace period for payments even if the cardholder takes advantage of a promotional rate balance or deferred interest rate balance. • Creditors are required to send credit card statements at least 21 days before the due date of the outstanding balance. • Creditors are prohibited from providing credit to consumers under age 18 (unless they are emancipated under state law, or the consumer's parent or legal guardian is designated as the primary account holder). • For college students who do not have a co-signer, the maximum amount of credit extended will be limited to the greater of 20 percent of the student's annual gross income or $500 dollars. The aggregate amount of credit extended from all of their credit cards will be limited to 30 percent of the student's annual gross income (for the recently completed calendar year). • Creditors are prohibited from opening a credit card account for any college student who does not have any verifiable annual gross income or already maintains a credit card account with that creditor, or any of its affiliates. • Creditors are prohibited from charging a fee to make telephone and web-based payments. However, a fee may be charged for expedited telephone payments made on the due date or the day before the due date. • Creditors are required to post their written credit card agreements on the internet.

At HOPE we keep our clients educated on news that effects their credit. If you would like to know more call us at 704-503-3669. Our staff is waiting om your call.

Credit Facts in the News Part 7

A very important part of your credit education is staying on top of credit facts in the news. This week we will take a look at things that are happening right now that affect your total financial future. According to Nurido News, There are a lot of myths about the credit score. Many people tend to think that some credit activities can lower their credit score. Here are a few facts about your credit score.

Checking your credit report does not deteriorate your credit score: Checking your own credit report goes down in the credit report as a soft inquiry and hence does not affect your credit score. However if a lender or a credit card company checks your credit report, it goes down as a hard inquiry and may cost you five points. But another important fact to be kept in mind is that all the inquiries in a 14-day period are considered as a single inquiry. The credit score rating system also does not take into consideration all the inquiries made within a period of 30 days before the day the credit score is to be computed.

Closing old accounts does not improve your credit score: Many lenders might tell you to close old accounts that are not in use. But doing this simply robs you of a long credit history and more percentage of your total credit limit is used up if you close your account.

Your FICO score is all you need: All the three major credit bureaus give you a FICO credit score rating formula. So your FICO score says all about your credit score and you don’t need to bother to look for something else to calculate your credit score. Using the FICO Credit Score Rating System, the credit bureaus give you a credit score. However the names for these credit scores are different at these bureaus. At Equifax, they call it Beacon credit score. At TransUnion, they call it Empirica. At Experian, it is called Experian/Fair, Isaac Risk Model.

The reason that you get different credit scores from all the bureaus is that reports of some credit activities performed by you is sent to one bureau and some to other. But more or less your credit score is the same.

Credit counseling does not hurt your score: The FICO credit score rating system does not take into consideration any reference to credit counseling in your report. In fact if you are facing troubles managing your finances then you can try credit counseling. It does not go down as a negative in a credit report.

The perfect way to improve your credit score is of course the simplest of them all – pay your bills on time. Rid yourself of credit score myths and start your credit improvement stint as soon as possible.

At HOPE USA we help our clients everyday by educating them about their credit. If you would like to know more pleae call us at 704-503-3669. We are waiting on your call.

Credit Facts In The News Part 6

A very important part of your credit education is staying on top of credit facts in the news. This week we will take a look at things that are happening right now that affect your total financial future.

The Wall Street Journal reported on June 11th that a bill to expand the homebuyer benefit has been introduced in the Senate.

The bill would increase the tax credit to $15,000 from the current $8000 credit for first time buyers.

The proposal would lift the income maximums and apply to all homebuyers, not only first time buyers.

The current tax credit applies to first time buyers only.  First time buyers are  defined as anyone who has not owned real estate for 3 years.  Current income limits are $75,000 for a single person and $150,000 for a couple.

The current tax credit for first time buyers is set to expire on December 1.

While the proposed legislation has the potential to improve the real estate market, the elimination of income restrictions is controversial.

The bipartisan bill is estimated to cost another $35.5 billion over the $2 to $3 billion the current measure is expected to cost.

Keep an eye on this bill to see how it will effect your ability to buy a home this year.

At HOPE we help educate our clients everyday so they can make wise decisions about their financial future. If you would like to know more please call us at 704-503-3669. Our staff is waiting on your call.

Credit Facts In The News Part 5

A very important part of your credit education is staying on top of credit facts in the news. This week we will take a look at things that are happening right now that affect your total financial future.

According to The News-Sentinel, You Need to beware of credit card ‘skim' scam. My oldest daughter was a victim of this very scam.

When you use your credit card to pay for your bill at a retail shop or restaurant, like most consumers, you probably assume it is in safe hands. In fact, your card could be in the hands of a “skim artist.” Credit card skimming is a practice that has been around for more than a decade but, has increased in frequency the past two or three years.

Here is how it works: Skim artists recruit gofers, who then find temporary work within restaurants, hotels and retail establishments. The recruits are given small, illicit, electronic devices, known as skimmers, which capture all of the credit or debit card's details (name, address, telephone number, card number, credit limit and PIN) in the few seconds that it takes to swipe the card through the machine.

When the unsuspecting customers go to pay their bill, their card is first swiped through the legitimate credit card machine, but then, secretly, it is also swiped through the smaller skimmer machine. The gofer then passes the gadget on to the skim artist, who pays them cash for their part in the crime. Once the skim artist has the details, he downloads the information onto a computer and makes up a fake card. The “cloned” card is embossed with the details of the victim's credit card and passed on to others, who may sell the card or use it for their own benefit. My husband and I know. It's happened to us, when a “T. Chavez” in California signed two big purchases with his name and our credit card number on an embossed card! The call from our financial institution began with, “Have you been in California recently?” Well, no. From there we knew there was a problem.

Skim artists usually target gold or platinum cards. Because of their higher credit limit, it visually takes the bank longer to realize there is a problem. While the whole process of getting a cloned card onto the streets can take less than a day, the customer is none the wiser, since his own credit card is in his wallet. In fact, victims may not realize they have been taken until they check at the end of the month, or receive a call from their bank or credit union telling them “your account has been compromised.”

How can you protect yourself?

Keep your receipts (all of them), check your statements regularly and review them thoroughly. If you see a transaction that you did not make or authorize, report it to the card issuer immediately. This goes for an “increase” in the tip that you left! A saved receipt/thoroughly reviewed statement will catch these disparities.

Request a credit check on yourself as often as twice a year.

At HOPE we educate our clients everyday on making wise credit decisions. If you would like to know more please call us at 704-503-3669. Our staff is waiting on your call.

Credit Facts In The News Part 4

A very important part of your credit education is staying on top of credit facts in the news. This week we will take a look at things that are happening right now that affect your total financial future.

If you can possibly wait you should buy a car after you are pre qualified for your home purchase. When you are ready to buy that cat the news below can help you.

According to Huliq News, Buying a car with Bad Credit can work for you but you need to take a careful approach. Are you  thinking of buying a car but your bad credit holds you back from securing it especially when you think of financing it The reasons for having poor credit can be numerous like past bankruptcy or simply default payment on either credit cards or loans. Of course obtaining a new car or used car loan with bad credit is not as easy as securing it with good credit score.

Fortunately, now there are ways to increase the chances of not only obtaining car loan, but with affordable rates. Thus for people with poor credit, following the below mentioned strategies can help them assuring car loan approval at lower interest rates while giving them a second chance to improve credit rating for securing finance in future.

Maximize Down Payment

Increasing the size of your down payment can help you gain approval on your car loan for any credit situation as it provide greater equity or security to the lender. Thus the lender is quite assured as half of the payment is made and offer you quick approval. Down payments also help you to reduce the interest rate  as the lender is secured with the amount which ultimately reduces your monthly payments and chances of being upside down on car as the principle amount is reduced.

Getting Pre Approved

Pre approved automobile financing for bad credit gives you negotiating power against the dealer to get lower price on car purchase. As you are pre qualified, it helps you to know exactly how much money you can afford to spend while buying a car, which enables you to be within the budget and allows to focus on getting the best car without worrying about financing.

Finding a Sub Prime Lender

Most banks and finance institutes only lend to people with prime or good Credit. If you have poor credit, bad credit, or very bad credit score, financing your automobile through sub prime lender can be the best source. The probability of approval for finance through sub prime auto lender is high as they specializes in offering finance to people with poor credit. They can offer you much more flexibility in terms and rates compare to the market and reduce inquiries on your credit report. Hence, before buying a car with bad credit you should first check your credit score and if it is poor then find a sub-prime lender.

Offering Collateral

Bad credit borrowers can opt for a car loan in two forms, one is secured and another is unsecured. Through the secured form of bad credit car loan, the borrower can pledge his any asset like home, boat and even his current car with the lender. This offers security to the lender about the repayment of the loan amount and thus you can have the benefit of borrowing as much as you want to the value of the collateral, lower rate of interest and instant approval.

Financing without Credit Check

Many lenders now offer a great platform through no credit check car loans for the car buyers with poor financial background to get their dream car. As no credit check vehicle loan is provided on the basis of an individual's income and employment history. So a person with significant income and employment history can obtain finance regardless of the credit issues.

Comparing Quotes Online

Now the borrowers can find affordable deals online as per their requirements by surfing for bad credit car loan online. Whereby, they can compare the loan quotes sent in by the lenders and without roaming around the market. All you need to do it to fill in a online car loan application form and wait for the approval, usually you can expect a response within one or two business days. A significant advantage of applying online is that you can fill from the comfort of your home while saving your time, money and without any hassle.

Bad credit borrowers now can take a relax breath with bad credit auto loan and following above simple footsteps which can lead them to securing a car without any botheration of being rejected or accepting overwhelming rates.

At HOPE we educate our clients everyday on making wise credit decisions. If you would like to know more please call us at 704-503-3669. Our staff is waiting on your call.