How a Credit Report Affects Your Ability to Buy a Home

Your credit report is requested by more than just your mortgage lender. Companies wanting to sell you something may want to look at it, even prospective employers. Credit card companies, car dealerships, land lords and perspective employers may all ask permission to look at your credit report. Issues on your credit report may affect interest points on your mortgage; it could even cost you a job. In order to protect consumers, Congress enacted the Fair Credit Reporting Act (FCRA) in 1996 to improve credit reporting practices.

Use of Credit Reports is Regulated by FCRA

FCRA regulations state those with your permission are allowed access to your credit reports. In fact, the law requires if you are denied a job due to information on the report, you must be informed of the specific reason. If you are denied a loan due to information on the report, you must be told which company produced this negative report. This gives you the opportunity to rectify any errors that may be on the report.

Consumers Have the Right to Challenge Mistakes or Errors

In order to correct the issue, you must go to the credit reporting agency and the company or person that is responsible for the negative report. It often takes a long time to get these corrections made. You will want to ensure that the other reporting agencies do not have the same mistake and then make sure they begin the process of correction as well. The credit reporting bureau will also examine the issue. Once they agree that there is a mistake, make sure that the item is removed from your credit report. Keep copies and dates of every step in the process, in case starting the process again becomes necessary.

What Can You Do About Negative Information on Your Report

Negative information can only be left on your credit report for seven years. If you find a forgotten debt, take the opportunity to pay it off, which will go a long way with lenders. Finally, keep tabs on how long negative information is left on your report. Once the seven years are up, you will find getting loans will come much easier. If you have too many credit cards but are not using them, that can give you a negative score. Close accounts of any cards that you don’t use. It is better to have a several credit cards with low balances than to have one or two that are maxed out. It may take a while for these changes to be reflected on your credit report.

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What Credit Card Debt Does - Slow Debt

If you are using your credit cards daily, or even weekly you could be racking up debt that you just can’t afford. Think about your credit cards, and how much you owe on your credit card debts right now. The interest on these accounts is adding to the amount you owe daily as well. Learning to be smart about your credit cards and your credit card debt is going to help you overcome the long term debts associated with credit cards.

How Much Are You Paying

If you don’t know how much the interest rate is on the credit cards you are using you could be losing out on a lot of money. Most credit cards average an interest rate of 18%. Yes, some are lower, and some interest rates are higher but you first need to know what your interest rates are. If you make a decision to use a credit card, you should also make the decision to pay off that credit card on a monthly basis.

How Much Are You Paying

If you are making just the minimum payment amount on your credit card, you aren’t paying enough. If you make a major purchase using your credit card, and you make just the minimum payment you could end up paying two or three times as much for that item than what you paid for it because of the interest. This really means you are just giving away your money to the banks and credit card companies when you make just the minimum amount payments.

How Long Have You Carried Your Balance

Think about the money you charge on your credit card, and then think about the interest you paid last year. If you paid minimum payments and the interest keeps building on that credit card, you haven’t paid off the item you purchased a year ago. You are wasting your money. Think about the debts you have, and how much money you would have if you didn’t have that big credit card payment every month. You could have more money in your savings, if you were to make that credit card debt ‘go away’.

There are people all across the nation and around the world that are wasting money on interest and late payment fees to credit card companies. Most households pay over a thousand dollars of interest in just one year on the credit card debts they are holding.

Do you want to be one of those families who has been paying on furniture for longer than the furniture is going to last, just because you put the purchase on a credit card, and then you are making the minimum payments? Think smart, and make your money work harder for you when you use a credit card to make a purchase of any type.

How to Get Ahead of Credit Card Debt

You can get ahead of the vicious circle of debt by paying more on your credit cards than the minimum payments. If you pay just ten more dollars than you have to, you are paying down on the principal balances, and that means you will pay even less interest next month. You can get out from under all that credit card debt, but it will mean not using your credit card to make small purchases or purchases that you could otherwise pay cash for. Think smart, pay down those cards, and get ahead of the credit card debt.

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Better Debt Relief Option - Know About Unsecured Loan For Debt Consolidation

Due to recent steep increase in the interest rates of credit cards and other financial interest rates, most individuals find it tough to pay off all their debts and hence financial irregularities have crept into their repayment record. Debtors are looking for easier ways which could relieve them off their credit woes and help them fix their financial problems.

Unsecured loan for debt consolidation does exactly that and has come as a relief to people who are in desperate need of help. This type of loan is not secured, that is you don't need a property or asset to get the loan as collateral. There is no risk of repossession of the property and you now have only one single consolidated loan with one lender to deal with. Since there is no security for the lender against his money, it is difficult to obtain unsecured loan especially for people who have poor credit history. Unsecured loan is mostly used to get small loans and is not the best choice when it comes to obtaining large amount of money.

Although there are various other loan facilities available, the unsecured loan for debt consolidation is a much better option for you if you have a good credit history as you wouldn't have to secure an asset as collateral. Unfortunately the decision to lend this type of loan lies entirely on the hands of the lending institution and banks but still companies do provide loans to people who don't have a very great credit history at a higher interest rate.

The lending institutions maintain a fixed set of rules and criteria when it comes to offering unsecured loan for debt consolidation. They look at good employment record and good credit history before approving the loan. They also look into the income details in order to be assured that you have the means to pay back the loan.

Unsecured loan for debt consolidation has become very popular in the recent few years. The interest rate charged against the loan has also come down. Since there is no collateral, documentation is minimal and hence the processing time for obtaining the unsecured loan is fast.

Visit http://www.debtconsolidationinfo.info for more tips on how to get Unsecured Loan For Debt Consolidation to help you get out of debt fast.

What Does A HUD Reverse Mortgage Give You?

Peace of mind is what you get when you choose a HUD reverse mortgage. Over 90% of American seniors choose this government-backed, insured and regulated type of loan. Knowing whether or not it's right for you requires that you understand the 3 types of program on offer and how they differ.

The HUD reverse mortgage was first introduced by the Department of Housing and Urban Development and is insured by the Federal Housing Administration (FHA) and is often referred to as a Home Equity Conversion Mortgage or HECM.

This type of mortgage has been around since the 1960s but few seniors elected to use what was currently on offer. Many seniors feared that they could loose their homes or risked not receiving the money they were entitled to because the lender went broke or the loan payments they received might exceed the value of the equity in their home.

With many seniors facing inadequate funds for their retirement years, the government looked at this type of loan and realized its potential to afford many seniors a more financially secure retirement. In response it set up a program that was insured by the government: the borrower is guaranteed to receive all the money they're entitled to no matter what.

A HUD reverse mortgage allows seniors, to use the equity in their home to raise funds. A lender agrees to give the borrower a specified amount and that the amount plus interest is payable only when the homeowner no longer lives in the home as their principal residence, sells it or dies. This means that there are no monthly repayments and the borrower can remain living in their home for the rest of their lives without worrying about paying back the loan.

In order to be eligible, the homeowner(s) must be 62 or over, live a single family dwelling, two-to-four unit, townhouse or FHA-approved condominium. There must be no, or very little, debt (mortgage) remaining on the home. Unlike a traditional mortgage or home equity loan, there is no need to provide proof of income or to have health checks.

The amount you receive with a HECM depends of the value of your home, its location, current interest rate and your age. It is also capped. At time of writing the maximum amount that can be borrowed varies between $200,160 and $362,790 depending on your home's location.

A HUD differs from a Home Keeper inasmuch as a Home Keeper is a Fannie Mae program. A Fannie Mae program allows for more flexibility on types of home that are eligible and can pay out more for single homeowners. It's also the only program offering a reverse mortgage for home purchase allowing a borrower to purchase a retirement home with no monthly payments.

The third type is a jumbo reverse mortgage. There are a number of these and they are set up and administered by private companies. They are more flexible in what they offer, the biggest advantage being that there is no limit on the maximum amount that can be borrowed, which makes them better suited to those who live in homes valued at over $500,000. Unlike HECM and Fannie Mae, not all jumbo programs are available nationwide.

Before you select any of the 3 programs, you should talk to your local broker about which would best suit your requirements - third party counseling is also a requirement. But, chances are, a HUD reverse mortgage will be your best option.

Follow the links for more advice on a HUD reverse mortgage to decide if this type of reverse mortgage loan is the best reverse mortgage for you.

Student Debt Help

With the cost of education rising and the easy availability of credit, student debt help is something that more young people are seeking. Student debt relief is available, but as a student you will first want to take the time to understand what type of debt you have and your best option for eliminating that debt.

As a student, your most common types of debt are student loans and consumer accounts, better known as credit card debt. These debts are handled differently when it comes to getting debt help. Credit card debt must be repaid in full for it not to have a serious negative effect on your credit.

This gives you the option of increasing your income or decreasing your expenses. If you can do both, you will have your debt paid off that much sooner. This really is the best way for you to get out of debt, but not all students are in the position where they can use this alternative. Credit counseling is also a choice that you have, provided you are not more than 3 months behind and you are able to make a 2 percent payment on your balances each month.

However, if you have graduated and are having trouble paying your student loans, they cannot be placed in credit counseling. Credit card accounts, utilities and medical bills can be placed in CCCS. A credit counseling service will consolidate all of your unsecured debt and you will make a monthly payment to the credit counseling agency. Your debt counseling company will then disburse this payment to your creditors.

Credit counseling may affect your credit score at first, but as you begin to reduce your debt and make your payments on time, you will see it increase. The most important aspect of getting out of debt is addressing the problem early. So many people wait until the situation has become critical and as a result their options are limited.

As far as your student loans go, you will want to talk to your student loan company and see what kind of hardship programs they have available. They are normally willing to work with you as you try to get your finances stabilized. Ignoring student loan payments is one of the worst things you can do. This is actually true for any payment. Many companies have programs that can assist with student debt help, but you are going to have to talk to your creditors in order to know what debt relief options are available.

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Debt Consolidation Loan - Advantages and Disadvantages

A debt consolidation loan can be a benefit to the borrower or can create further problems. Used correctly, it can relieve stress and reduce record keeping.

People elect to take out a debt consolidation loan for many reasons. These should be carefully reviewed to determine if this financial choice is right for your situation. If you just want to be able to increase your credit availability, a debt consolidation loan is not a good way to go. A good procedure is to make a list of all the outstanding debts and the interest rates that apply to each one. Calculate how long it would take before the debts could be cleared using the existing minimum balances and terms. Compare that with the cost of a loan to clear the smaller amounts or to roll them into a larger loan.

One monthly payment to keep track of

When you select a debt consolidation loan, you have a better chance of ending the process with just one payment to make each month. You can usually structure the due date on the payment to take advantage of the pay dates in your household. It may even be possible to arrange for an electronic withdrawal from an account that you can manage online. In this way, you can transfer funds into the account just prior to the due date so that you will never be in danger of missing a payment or incurring overdraft fees.

Lower Interest rates

If you shop carefully for a debt consolidation loan, you may be able to get a loan that has a lower interest rate on the loan. This is not always possible, because credit card debt, for example tends to be very high interest and the consolidation loan may not gain much in the area of interest, particularly when there are often loan origination fees and closing costs on the loan. Make certain to carefully review the loan document so that you know exactly what you are agreeing to.

Tax benefits

If your debt consolidation loan is tied to the equity in your home, you may be able to gain tax benefits from the interest on the loan. Since this type of loan features interest rates that are typically lower than those of credit card debt, you can make a double savings. However, you should keep in mind that although the interest rate is lower, it may take longer to pay off the debt so your loan can actually end up costing you more. Again, the decision will depend on your particular situation.

Stress reduction

Probably the most commonly reported benefit after obtaining a debt consolidation loan is that of being able to reduce worry about how the bills are going to be paid. When you are faced with many minimum payments on numerous credit card bills, it can seem as if you will never be able to get ahead. When you have only one structured payment of a set amount, you can plan ahead, you know it will fit within your current budget so you no longer need be frantic about the danger of being unable to meet all your financial obligations.

Overwhelmed By Debt? Here Are Six Effective Solutions

Today, many Americans find themselves in a financial crisis.

Personal bankruptcies are being declared in record numbers with one out of every 100 families experiencing this tragic legal process, according to a survey conducted by American Express.

Although the stigma has lessened, the effects can be long-lasting. Finding employment or getting an insurance policy can be difficult if bankruptcy is part of a personal record.

Acquiring material possessions, taking trips to popular vacation destinations or dining out regularly at fine restaurants will eventually lead to faded memories. But the aftereffects of many credit card charges can linger for decades due to the power of compound interest. Paying three to four times the original purchase amount in fees and interest charges is a definite possibility. Making minimum payments on credit cards or other unsecured debt will eventually bury consumers in debt quicksand.

Here are six tips that can help to completely eliminate personal debt if individuals are willing to make some lifestyle changes:

Itemize debts from the smallest balance to the largest regardless of the interest rates. List the minimum amounts due on each bill. Make the largest payment possible on the smallest debt and make minimum payments on all other consumer debt. Once Debt #1 is fully paid, apply the payment from Debt #1 to Debt #2 (plus its minimum payment). Work through each debt obligation using this strategy until all debt is fully paid. Some financial planners would recommend reducing high interest rate balances first but the goal is to erase debt balances quickly and to gain momentum instead of focusing on interest rates. Attempting to pay-off a large, high interest rate balance first could lead to frustration and diffuse any good intentions to eliminate debt.

Cut up the credit cards. This will take some courage but it's necessary in order to get out of debt completely. If a plastic card is necessary, consider a debit card which acts like cash, not credit.

Don't borrow by establishing a home equity line of credit. The inability to make these loan payments, could eventually lead to a home going into foreclosure.

Develop a money spending plan based on the "10-10-80" formula. The first 10% goes to charitable organizations or to a place of worship. The next 10% goes to personal savings. The final 80% is used to pay for basic living expenses. Keep in mind, that these are ideal percentages. Consider lower percentages to start if it's difficult to give or save 10%. The importance is in the order, giving, saving, and spending.

PAY CASH for things. No cash, no purchase.

Get debt counseling but be cautious of credit counseling agencies, debt management plans (DMP), debt settlement or debt consolidation companies. There are too many predatory "debt counseling" companies looking to make a fast buck at someone's expense. The best approach is to consult with a financial planner, preferably a CERTIFIED FINANCIAL PLANNER™ professional (CFP®). These advisors have a client's welfare as a top priority. Their fee is a small price to pay if it means getting out of debt permanently.

Making the transition from a credit/debt lifestyle to cash-basis living takes time, effort and discipline but the rewards make it worthwhile.

Digging out of a debt hole requires a change in mindset. If financially distressed individuals are willing to commit to change, the road can eventually lead to financial freedom and peace of mind.

Rob Smith, CFP®, is President of Debt Mentors, LLC, a financial planning practice that assists and educates individuals in the areas of money management, debt elimination and wealth building. His 25-year career has served individuals, small business owners and financial institutions.
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Debt Management: Manage And Eliminate All Your Debts

You can get good relieve from your debt related troubles by following the Debt Management programs properly. It is debt management that comprises all do's and don't which will be of quite good help to you. As getting rid of debts is not possible therefore, going for these programs is not at all a bad idea.

As a part of the debt management program you can approach the debt counselors as they can give you correct advice and suggestions. The debt counselor often acts as a mediator between you and your creditor. They on behalf of you they discuss the debt matter with your creditor. After proper debt negotiation an amount is fixed for monthly payment which often is less than what you were paying before.

While you go for a debt counselor certain things you should always keep in mind. These are -

* Even if the negotiation between your creditor and the debt counselor continues you should not stop paying the bills
* Always try to be regular in payment to avoid late fee or penalty
* Take confirmed information from your creditor regarding the functions of the debt counselors
* Watch and keep record that the debt counselor team is paying your debts

Another effective step to be undertaken in the debt management program is to go for the debt consolidation loans. It also plays a vital role in repaying debts. A debt consolidation loan merges all debts in to it and thus, the rate of interest also becomes one. So, with the help of this loan you can pay off all your debts. However, you should opt for debt consolidation if you have more than two debts and the debts are above £5,000.

About the Author

Roger John works as financial advisor in Debt Loan Management. With Debt Loan Management, it is very easy to take and settle payday loans. We value time, money and effort of our customers and hence not let any one of the three get wasted at any cost. To know more about debt management, debt management services, debt management credit card, debt management plan visit http://www.debtloa

The Best Equity Home Loans to the Rescue

Your principal balance reduces the most with the best equity home loans. Some loans allow for rapid pay down of the balance. Others do not. It is important to know the difference between these types of loans. Borrowers who are not educated can often end up trapped in the wrong mortgage.

There are several different types of mortgages. One type is referred to as an interest only mortgage. An interest only loan requires no payment towards principal during the initial time frame of the mortgage. The amount of time that the initial interest rate remains low varies by lender and loan type.

The important facet of an interest only loan is that no principal is paid down hence no equity accrued. Most experts assert that equity should be built up as opposed to neglected. If you were even in a position needing to sell your home, then not having equity can result in not being able to get enough to even cover your outstanding loan balance.

Some loans are especially prone to putting you in this situation. One such example are negative amortization loans. These loans allow for a minimum monthly payment that does not even cover the full amount of interest due on the loan. This can prove to be very dangerous and often end up in having what is called negative equity. This should be avoided at all costs.

The safer route to go is with a fixed rate mortgage. These type of mortgages come with an initial interest rate that never changes. They also have a repayment schedule usually entailing a 30 year even amortization. Some even come with 25 or 20 year terms. The shorter the term equates to the faster equity is achieved.

You are always able to take back out equity through a home equity loan if the need should arise. Having equity allows you to ride out changes in the market. Should the need not arise then you will end up owning your home outright quicker and enjoy life without a mortgage payment.

Different loans require varying amounts as down payment. Most today require 20%. This is your initial equity. If you put down less, then you obviously have less equity. Many who took out "no money down" mortgages when they were available ended up regretting it. Lacking equity can take its toll.

Use the best equity home loans to either build or take advantage of equity in your home. Different loans suit varied purposes. Make sure you do your research to ascertain exactly which mortgage is best for you. Knowledge is power, and when it comes to mortgages it can also mean substantial saved money.

About the Author

Everyone is looking to find the best deal so why not look for the best equity home loans? For more, visit http://www.MortgageLoans-101.com where you'll find this and much more.

The New World Of Mortgage Loans

Let's think back for second to the year 2000. Home costs were low and interest rates were decent. All of a sudden the feds drop interest rates and home values start to climb. Does anyone remember why? Of course we do but often forget the real reasons why anything in lending happens in the first place. 9/11 was a disaster to this country that almost crippled the economy. But once again the feds save the day by dramatically dropping mortgage interest rates.

If we take a look at what happens over the next few years from 2001 to 2005, we notice that not only do rates stay low but home values are increasing at a ratio never before seen. So of course as Americans when our equity increases and we can see tangible revenue, we take advantage of it. I don't think I know anyone that owned a home during that period who did not do a cash out refi. So as it were rapidly 80% of all home owners are cash out to 85% or more of their homes value. To keep the loans coming our nations most trusted lenders start coming up with over the top methods of lending procedures. Creating ridiculous loans that do nothing but get the American homeowner more broke and in more trouble than this country has ever seen.

So here we are mid 2008 and nobody can get approved to buy a new mattress much less a home. However there is home. The investors are sucking up the foreclosures and leveling out the market slowing but surely. In this new era of lending we must now think ahead and not just for now. Are there any real incentives left for homeowners and homebuyers right now. Sure you just have to look around and pick through the garbage. The basic conventional and FHA loans are still available and there are some novelty mortgage products left. But we must ask ourselves. What do I really want out of this loan and proceed from there.

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Poor Credit Home Loans Giving People a Chance

If you don't have a great credit score you shouldn't give up on the home ownership dream. There are poor credit home loans for you. You just have to know where to look and which programs might be applicable to your situation. The benefits of home ownership justify the research necessary for you to find the right loan.

Most normal private loans have minimum credit score standards. Some are firm with this and will not budge. Others might make exceptions assuming you come up with a higher down payment. It might also be possible to get a cosigner. It is worth the time to inquire about such possibilities if they are applicable to you.

The current real estate market condition also presents other opportunities for creative buyers with bad credit. Taking over a mortgage could be a possibility. It might otherwise be possible to sign a long term lease with an option to buy the property at current market value.

Some owners might even allow rent payments to be applied towards the purchase price should the option be executed. This is a great way for those with bad credit to get into an equity building situation. It also avoids any down payment.

If those paths prove fruitless, then all is not lost. There are loans backed by what is called the Federal Housing Administration. These are commonly referred to as FHA loans. FHA loans do not require minimum credit requirements. Aside from not having minimum credit score requirements, FHA loans also provide other advantages which are usually needed by those with less than stellar credit.

Credit isn't an issue with an FHA loan unless you have filed for bankruptcy within the previous two year period or have had a foreclosure within the previous 3 year period. FHA loans also do not require the traditional 20% down payment. Most often, they only require a 3% down payment making it much easier for those with bad credit to close on their property.

Another advantage is the waiving of the stipulation that closing costs be borne by the borrower due in full at closing. These can often add up to thousands of dollars. With an FHA loan, the lender pays half of these fees, and the other half is tacked onto the principal of the mortgage.

Do not make the assumption that there are no poor credit home loans available for you. There very well may be. You just have to know where to look. The above ideas are just a few out of many. Do your research and you might discover that home ownership is within your reach.

About the Author

Bad credit? Poor credit home loans are giving people a fighting chance at owning a home of their own. For more on this, visit http://www.MortgageLoans-101.com where you'll find this and much more on your mortgage loan needs.

Reverse Mortgage Loans Can Yield That Extra Cash

Reverse mortgage loans were made specifically to help seniors cash out equity built up in their homes without incurring any monthly payments or risk losing their house if a new loan defaults. This money can be drawn out as a single lump sum or as a stream of monthly payments. The terms and process to secure these reverse mortgages can be complex. It is best to fully research how they work if you are considering a reverse mortgage.

There are rules governing who is eligible for reverse mortgages. Firstly, you must be at least 62 years of age at the time of the mortgage closing. These loans can be subjected to abuse by some unscrupulous lenders. For that reason, the law mandates that reverse loan applicants first attend an education course approved by the government. This is free and provides valuable information.

As indicated, there are no payments due on money taken out on these loans until one of three scenarios happen. The first is if the borrower passes away. The second is if the borrower leaves the home and no longer resides there. The third is if the home is sold. So, there is no scenario where the borrower still owns and lives in the home that require payment or subject them to losing their home.

If there are any outstanding normal mortgages attached to the home, then they must be paid in full with the proceeds of the reverse mortgage with the balance of the reverse mortgage going to the borrower. The amount of funds available on a given reverse mortgage is controlled by several factors.

The first factor is the value of the home. The borrower is able to take out a higher reverse mortgage amount commensurate with the appraised market value of the property. The second factor is current market interest rates. The higher the current benchmark interest rate then the less that can be secured in a reverse mortgage.

With a reverse mortgage, the age of the borrower becomes a factor. The older the borrower is, the more that can be borrowed with these type loans. As stated before, the minimum age is 62 to begin with. There are formulas used by various lenders to adjust the amount available depending upon the home owner's age. Most of them are available online at the applicable sites.

Your location can also impact the amount available to you from a reverse mortgage. Each county can have different formulas thus yielding varying amounts which can be cashed out. Additionally, how you take the money can effect the calculation. If you are willing to take the pay out in monthly payments, then the amount increases.

Reverse mortgage loans can be complex, but they also can be greatly beneficial to seniors need to supplement fixed incomes. They present an avenue to clear all bills and not have to worry about being forced to leave their home. Just ensure you are fully armed with all the information before entering the process.

About the Author

Some of the most highly regarded and most mis-understood mortgage loans today are reverse mortgage loans. For more, visit http://www.MortgageLoans-101.com where you'll find this and much more on your home loans needs.

Exposed - 3 Things That Lower Your Credit Score Fast

In this article we are going to keep exploring some little known items that lower your credit score fast. The simple truth of the matter is this: Almost EVERY article I read on consumer credit repair simply states the obvious: If you don't pay your bills on time, your score is going to go down. Of COURSE this is true. But there are many people who pay their bills religiously on time, yet still have a FICO score that proverbially sits in the unwelcome waters of the south side of 620. (Roughly the national average) So how do people who seem to maintain a regular and positive payment history seem to suffer the SAME ignominious fate as those who pay their bills ONLY when they feel like it? Read on to find out..:-)

Debt to Balance in NOT a Trivial Factor

The next time someone tells you the amount you owe, relative to the limit on the account is NOT a huge factor in your FICO...you have my permission to call them a liar. (Or simply uninformed) It does - and depending on who you ask and which bureau you are looking at, it is a HUGE predictor of future history....and is weighted accordingly. In simple English? If you owe close to the limits on your cards and accounts, you are statistically pretty likely to become delinquent soon, and you are scored accordingly...even if you've NEVER been late before. Not fair? I agree. Very true? Indeed, indeed!

Don't Close Those Old Accounts!

Ever hear advice to close out the accounts you aren't using? Don't listen. Big mistake! You want the age of the old accounts to work in your favor...keep them OPEN, and balance low! A 50 dollar rolling balance on a 10 year old credit card is FAR more valuable than closing that account EVEN if you never use it. It gives you more history, plus it lowers your debt to balance ratio overall. Especially if you've got a few close to the limit as in our first example above.

Choose Your Credit Wisely

All credit is NOT created equal. People judge you by the credit company you keep! Finance companies are known to lend money to people at risk...and people at risk DEFAULT a heck of a lot more often than mainstream folks do. So no matter how tempting that easy Five Thousand dollar loan is from the local finance company, just say no. You are FAR better getting another lower balance mainstream card and simply working creatively to free up some cash, RATHER than getting a loan from a "uh -oh" finance co on your report. ( Trust me, I've had a few!)

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Banks Far Too Slow To Increase Credit Interest Rates

Despite recent price wars in the credit interest rates offered by banks, too many are still offering low incentives for those who keep their accounts in credit, a new report has asserted.

MoneyExpert claims, there has been an increase in the average interest rates offered by the banks, however it insists that far too many are not rewarding their customers for keeping a positive balance in their accounts especially in the current economic situation. It claims that although the average credit interest rate has increased to 2 per cent - rising from 1.6 per cent a year ago - there are still a number of banks offering customers a rate of less than one per cent with their current accounts.

There has been a decrease in number of sub-one per cent offerings, with more than half (56 per cent) of all current accounts offering this "pittance" in 2007. Figures from the group suggest that currently, 45 per cent of all products offer this level of interest. With the housing market floundering, public spending waning and the cost of living increasing, MoneyExpert invites banks to do more to compensate customers who are managing to keep their current accounts in credit during such tough times.

Sean Gardner, director of MoneyExpert, said: "It's encouraging to see banks getting their houses in order and offering better interest rates for customers with positive balances. But to be quite frank - nearly half of all bank accounts compensate clients who stay in the black with lower than 1 per cent yearly interest. That's an appalling return. Given there are accounts out there offering ten times that amount of interest, customers should not settle for a raw deal."

For those who have been unable to keep their finances in the black as the increased demands of the gloomy financial environment take hold, taking out a debt consolidation loan may prove an effective course of action in preventing outgoings from spiralling further out of control.

Mr Gardner also stated that 3.57 per cent is a healthy average for accounts paying above one per cent. He urged customers to search out a deal that offered at least this level in order to make their money go further.

Research conducted by the group found that only 15 current accounts offered by six UK banks offer credit interest rates above five per cent, with Lloyds TSB noted for raising the level offered on its Plus account from four to six per cent. Meanwhile, at the other end of the scale, the financial advisory firm reported that the majority of high street banks offered a rate of 0.1 per cent on at least one of their current accounts.

Mr Gardner also noted the importance of customer support and other added perks that banks offer and urged consumers to make sure they were not choosing a provider purely on the headline rate. He advised Britons to make sure their chosen bank offered the right kind of facilities for their needs.

Consumers who have found themselves experiencing worsening money problems in recent months may wish to take out a consolidation loan in order to stem the tide of an unmanageable level of monthly repayment commitments. Indeed, as a recent study from Lloyds TSB showed, many people have been feeling the strain in the last year. According to its inflation barometer, the bank found that 90 per cent of people felt that the price of goods and services had increased in the past 12 months.

About the Author

Abbi Rouse is Editor in Chief for All About Loans. Our visitors have access to cheap online loans of all types: From home improvement loans to bad credit debt consolidation loans. Visit our site today: http://www.allaboutloans.co.uk

Limit Your Stress - Consolidate Student Loans

For most students that graduate from a two or four year degree program and then enter into the workforce, paying back student loans within the 10 year allowable time can be a real challenge. Most students during this first 10 years after graduation will get married, have at least one child, change jobs at least once and will purchase at least one vehicle and most likely a house. All these expenses can be difficult to manage on top of various federal and private school loans that may be outstanding. One major option is to consolidate student loans, which means borrowing to combine your student loans, pay them off, then pay off the remaining single consolidated loan over a longer repayment period.

The option to consolidate student loans is open to most employed graduates or even, in some cases, to students that are still in school but are in some way working to earn an income. To consolidate student loans it is important to consider all your options and to understand how the various interest rate differences on the original and the consolidation loan will compare over the long run. A financial planner, consultant or even your regular banker can help you understand the advantages and disadvantages to consolidate student loans.

Generally the biggest advantage to consolidate student loans is that it takes the multiple payments from different lenders you may have an literally pays off these loans, leaving you with one payment to make to the consolidated loan lender. In most cases, actually in virtually all cases, this one monthly payment will be less than the original multiple payments. The reason that this can happen is when you consolidate student loans the time that you have to repay is significantly expanded, meaning that you have to pay less each month.

The negative to working to consolidate student loans is also related to the repayment stretch. You will have to keep making payments for much longer, which may be up to 30 years, before you will be debt free with regards to the student loans. This means that over the life of the consolidated loan you will pay significantly more in interest, which may be a huge dollar amount if you actually make only the required payments. One way to minimize this interest amount is to make more than the required monthly payment on the consolidated loan, and ensure that the extra payment is going towards the principal. This will rapidly cut payments off the duration of the loan, especially if you start right when the consolidated student loans are put into place.

About the Author

Robert is the owner/developer of www.a63s.com, an online guide with Information about loans and help on getting a loan. For the student looking for a loan they can visit: Student Loans for more info.
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Now You Can Afford To Buy A Home

Perhaps you're thinking of buying a home. Buying a house is a big step, but often a smart move.

A home is a financial asset and more: it's a place to live and raise children; it's a plan for the future; it's an investment in your community. This article will provide you with tips on how to buy a home.

Buying a home is one of the most complex financial decisions
you’ll ever make.

Real estate agents represent the seller not the buyer.
Consider hiring an agent who works for you, not the seller.

Get prices on other homes. Knowing the price of other
homes in a neighborhood will help you avoid paying to much.

Have the property inspected. Use a licensed home inspector to carefully inspect the property before agreeing to buy it.

Shopping around for a home loan or mortgage will help you get
the best financial deal. A mortgage, whether it’s a home
purchase, a refinancing, or a home equity loan, is a product,
just like a car, so the price and terms may be negotiable. You
will want to compare all the costs involved in obtaining a
mortgage.

Shopping, comparing, and negotiating may save you thousands of
dollars. Mortgage financing options are much more diverse than
many borrowers think.

There is a wide variety of mortgage products, adjustable rate mortgages (ARM), FHA loans, VA loans, interest only mortgages, jumbo mortgages, two-step mortgages, balloon mortgages, assumable mortgages, construction mortgages, no down payment mortgages and seller financing.

When Shopping For A Home Mortgage:

Research current interest rates. Check the real estate
section of your local newspaper, use the Internet, or call at
least six lenders for information.

Check the rates for 30-year, 20-year and 15-year mortgages. You can save thousands of dollars in interest charges by getting the shortest-term mortgage you can afford.

Ask for details on the same loan amount, loan term, and type of loan from multiple lenders so you can compare the information. Be sure to get the Annual Percentage Rate (APR), which takes into account not only the interest rate but also points, broker fees, and other credit charges expressed per month.

Ask whether the rate is fixed or adjustable. The interest rate on adjustable rate mortgage loans(ARMs) can vary a great deal over the lifetime of the mortgage.

An increase of several percentage points might raise payments by hundreds of dollars per month.

If a loan has an adjustable rate, ask when and how the rate and loan payment could change.

Find out how much down payment is required. Some lenders
require 20 percent of the home’s purchase price as a down
payment. But many lenders now offer loans that require less.
In these cases, you may be required to purchase private mortgage
insurance (PMI) to protect the lender if you fail behind on
payments.

I PMI is required ask what the total cost of the
insurance will be. How much will the monthly mortgage payment
be when the PMI premium is added and how long you will be
required to carry PMI?

Ask if you can pay off the loan early and if there is a penalty for doing so.

In addition, there is a long list of sources for mortgages
loans: mortgage banks, mortgage brokers, banks, thrifts and
credit unions, home builders, real estate agencies and Internet
lenders.

About the Author

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