Factors That Negatively Affect Credit Part 1

Factors That Negatively Affect Credit – Part 1

This week we will be sharing with you, “Factors that negatively affect credit”.

First we will mention inaccurate negative information that might be on your credit report. Many credit reports have out dated or inaccurate information that may be showing on the credit report. A recent study showed that over 75% of credit reports contain errors.

You should obtain a credit report so you will know what is being shown on your credit reports. These are the reports creditors will use to determine if they will approve you for a loan. It is important that you are not surprised by inaccurate information being listed on your credit file. Inaccurate derogatory items will cause your scores to be lower than they should be.

It is your legal right to challenge this information and force the creditor to verify the information they have submitted to the bureaus on your credit file. Creditors must prove the information they have submitted is correct. Getting these items updated correctly or deleted will cause your score to increase significantly.

Most of the time you can get items removed from your credit report if they are seven years old. There are also limitations as to how long a judgment or bankruptcy may stay on your report as well. Many times these are listed inaccurately with old information.

At HOPE help clients verify their credit information to be sure your credit file is 100% accurate. If you would like more information please give us a call at 704-503-3669.

Are Department Store Credit Cards Best?

I have often been asked: "Are department store credit cards best?" These cards are also referred to as "retail store cards" and, whatever you choose to call them, the answer to the previous question is "not really." Many times retail stores will offer you a discount on your purchase if you apply for their card. However, discount aside there are still several reasons I would stay away from these cards.

1. Department store credit cards generally come with a low limit. 
This means that if you charge anything on the account then you will be endanger of having a high revolving utilization ratio - a big mistake in the credit score department. 

2. Every time someone pulls your credit it may lower your scores.

3. The interest rate on retail cards is generally higher, perhaps much higher. 

4. You limit your self to buying in that store alone, where with a general use Visa, Master Card or Discover Card you can use the card almost anywhere.

In my opinion you should never charge more than you can pay off within one week. Keeping your balance at zero to $10 ensures you keep your scores as high as possible.

Everyday at HOPE4USA we help our clients make wise decisions about their credit. If you would like to know more please call us at 704-499-9696 or CLICK HERE to schedule your no-obligation, professional credit analysis now. 

Good Reasons to Buy a Home Part 5

Good Reasons to Buy a Home Part 5

Every day this week we are sharing with you good reasons why you should buy a home. Here are our final tips for now.

1. Interest rates are at an incredible low point.  Typically speaking, bad news in the economy results in good news for home loan rates.  Interest rates continue to hover at historic lows.  Seizing the opportunity to lock in a long-term fixed rate right now will save you thousands over the life of the loan.  Maybe even tens of thousands.  Interest rates could go up again anytime, so waiting could be financially dangerous.  Furthermore, if you qualify for an FHA loan, you can lock in your rate, then refinance for free in the future if rates go even lower.  Talk about a win-win situation!

2. Home choices are plentiful and it is a strong buyer's market right now.  There are lots of homes on the market so there is plenty to choose from.  Don’t wait for the seller's market to return.

At HOPE we help our client everyday in making wise decisions regarding their credit. If you would like to know more about how the HOPE program works please give us a call at 704-503-3669. Our friendly staff is standing by.

Good Reasons to Buy a Home Part 4

Good Reasons to Buy a Home Part 4

Every day this week we are sharing with you good reasons why you should buy a home.

Today we are continuing to discuss the tax breaks associated with buying a home

6. Credit for first-time home buyers. If you purchased a primary residence after April 8, 2008, and before July 1, 2009, and are a "first-time" home buyer, you can qualify for a new tax credit for 10% of up to $75,000 of the purchase price. To be eligible, you must not have owned a residence in the U.S. in the previous three years. Nor can the credit be taken if your mortgage is funded with tax-free bonds that states and localities issue to give below-market mortgages.

The credit phases out between $150,000 and $170,000 of AGI for married couples and $75,000 to $95,000 for single filers. It is refundable to the extent it exceeds your regular tax liability -- which means that if the credit more than offsets your tax liability for the year, you'll get a refund check for the balance -- but does not offset the AMT. If you buy your home in the first five months of 2009, you can elect to take the credit on your 2008 income tax return.

Beware: This credit is more like an interest-free loan from Uncle Sam rather than a gift, because it will be recaptured ratably over 15 years. The recapture period starts two years after the year the credit is claimed. Thus, if you claim a $7,500 tax credit for a purchase in 2008, you will have to pay an extra $500 of income tax in 2010 and in subsequent years until you have repaid the full $7,500. If you sell the residence before the credit is fully repaid, the balance is due in the year of the sale. (If your profit on the sale is less than the unrecaptured credit, though, the amount due is limited to the amount of your profit.)

7. First-time home buyer tax credit of $8,000.  If you have not owned a home in the last 3 years, you can get paid $8,000 to purchase a home.  Unbelievable.  I am still astounded by this.

President Barack Obama signed the American Recovery and Reinvestment Act into law .  This stimulus package is enormous and has many facets.  I’d like to focus on just one aspect of this law: the first-time home buyer tax credit.

First-time home buyers who purchase a home between January 1, 2009 and November 30, 2009 will be eligible to receive up to an $8,000 tax credit.  This money does not have to be repaid.  The home must then be used as the buyer’s primary residence for the next 3 years (otherwise the tax credit does need to be repaid).

This is a great opportunity for first-time home buyers to buy a home.  Combine this with the current buyer’s market and low interest rate and this truly is one of the best times to buy.

At HOPE we help our client’s everyday in making wise decisions regarding their credit. If you would like to know more about how the HOPE program works please give us a call at 704-503-3669. We are waiting on your call.

Good Reasons to Buy a Home Part 3

Good Reasons to Buy a Home Part 3

Every day this week we are sharing with you good reasons why you should buy a home.

Today we are continuing to discuss the tax breaks for buying a home:

3. Real-estate taxes. You can deduct the local property taxes you pay each year, too. The amount may be shown on a form you receive from your lender, if you pay your taxes through an escrow account. If you pay them directly to the municipality, though, check your records or your checkbook registry.

In the year you purchase your residence, you probably reimbursed the seller for real estate taxes he or she had prepaid for time you actually owned the home. If so, that amount will be shown on your settlement sheet. Include this amount in your real-estate tax deduction. Note that you can't deduct payments into your escrow account as real-estate taxes. Your deposits are simply money put aside to cover future tax payments. You can deduct only the actual real-estate tax payments made from the account by your lender.

New for 2008: For the first time, homeowners who take the standard deduction instead of itemizing can deduct part of their property taxes. Joint filers can add in up to $1,000 of property taxes paid to the amounts shown above. Singles can add in up to $500 of real estate tax payments.

4. PMI premiums. Buyers who make a down payment of less than 20% of a home's cost usually get stuck paying premiums for private mortgage insurance (PMI), an extra fee that protects the lender if the borrower fails to repay the loan. For mortgages issued after 2006, PMI premiums can be deducted by home buyers.

At HOPE we help our client’s everyday in making wise decisions regarding their credit. If you would like to know more about how the HOPE program works please give us a call at 704-503-3669. We are looking forward to hearing from you.