The Advantages of Credit Cards
January 31, 2008
There are many evils associated with credit cards, but there are benefits that are hard to ignore. One benefit is having the credit card company act in your behalf to recover funds from a disputed transaction. Under the Fair Credit Billing Act the credit card company has to investigate the dispute and either take the charge off your bill or explain why it is correct. Even better, you don’t have to pay the portion of the credit-card bill or related interest charges while the dispute is being investigated.
The types of blling disputes/errors covered by the Fair Credit Billing Act are:
- Charges that list the wrong date or amount.
- Charges for goods and services you didn’t accept or weren’t delivered as agreed.
- Math errors.
- Failure to post payments and other credits, such as returns.
- Unauthorized charges.
Before you dispute any of issues you must first contact the retailer and try to settle the dispute. If they ignore you, or the dispute is not settled then contact the credit card company. Usually you need to have your dispute in writing to the credit card company. The address for billing disputes is different then the address to send payments. The billing dispute address can be found on the back of your monthly statement. If it cannot be found, call the credit card company’s customer service for the billing dispute address. You usually only have a certain number of days to dispute the billing error so make sure you mail in your dispute before the deadline.
Make or Break Your Retirement!
January 30, 2008
The Prudential has dubbed those who refuse to leave home as “kippers” or “kids in parents’ pockets eroding retirement savings”. Recent research concludes 6.8m over-18s live with their parents. Less than half pay rent, and many parents provide cash to spend.
Does this scenario sound familiar?
‘As a parent you’ve spent over 20 years diligently caring for and raising your children. Financially supporting them and ensuring they receive the best education possible. They’ve attended University, graduated with a respectable degree and are ready to set up their own home. You’re now looking forward to more free time with less financial obligations. BUT, due to no fault of yours, your well educated, talented, highly motivated offspring cannot afford to leave home for possibly another 5, 10 or even 15 years.’
This is a reality for many parents right now! A recent survey for BBC2’s Money Programme (http://news.bbc.co.uk/1/hi/business/4075536.stm) found that high property prices and debts often prevent offspring leaving home well into their twenties and thirties. Further research, by independent market analyst Datamonitor, found that 67% of 18-24 year olds across Europe still relied on their parents for housing in 2004. In fact, one in seven parents with adult children have remortgaged or taken out a loan in an attempt to help them. Couple this with an ageing population, widespread concerns about retirement pensions and the long gone days of a ‘job for life’, it’s undeniable that without taking positive action many parents and their children face uncertain financial futures.
Doing a California Refinance Online
January 30, 2008
Californians are passionate people. I know. I have lived in California my whole life: From the smoggy basins of Los Angeles, to, well, the smoggy basins of Sacramento. I’ve traveled highway 101, I’ve smelled the glory of the Redwoods, and I’ve experienced the confusion of the Terminator becoming governor. Without turning into a pop-song, I’ve done it all California-style, and that even includes, moving through the exciting process of doing a California Refinance Online!
Okay, so it’s not exactly as poetic or as exciting as I’m making it out to be, but a California Refinance conducted online does not make you a bad Californian. It makes you a smart consumer, and if it’s important for you to keep your business local, then there’s no need to shy away from your monitor. You can still do it all in your pajamas.
In the next few moments, I’m going to cover some basics to ease your worries and calm your nerves about using the internet to gain access to local money.
1. You are in Total Control.
2. Some Important Online Information
3. Keeping it Local!
4. Start Broad, And then Narrow Your Search.
How To Choose A Credit Card
January 29, 2008
Your credit score may just be a little number, but it packs a big punch. A poor credit score can keep you from getting a mortgage or a car loan. In addition, your credit score may haunt you for a long time if it suddenly drops. Of course, if you have a good credit score it opens a lot of doors for you. This is just one reason why it is important to think about which credit card you apply for before you do.
Every time you apply for a credit card, the company has to check your credit score. This is a bad thing. Numerous inquiries from credit card companies look bad on your credit report because it looks as though you are scrambling to open lines of credit, which can be a sign that you are struggling financially. Of course, this may not be the case. However, credit scoring companies all look at it the same way.
California Bad Credit Mortgage
January 28, 2008
California is a beautiful place to live There is no doubt about that. But, to live in California you must pay the price, which is sky high real estate prices. Renting, as opposed to buying in California, can save a little bit of money. However, renting has the disadvantage of not building any equity. As home prices in California continue to rise, you may want to be a homeowner and take advantage of the home appreciation factor. If you’re going to be paying a lot of money to live in California anyway, you might as well be making some money on top of it too, right?
Now, if you have bad credit and are trying to get a home loan for California home prices, this may seem like an impossible situation. Home prices are high and if you already have poor credit, the fact that you need to be approved for such a high loan amount can be an added difficulty when trying to get a home loan.
However, there is hope. There are so many programs available today to help people with recent bankruptcys, collections and even foreclosures, obtain mortgage financing. There are nationwide mortgage service companies that can either approve you directly or get you in touch with a lender who can approve you.
Cash Advance Payday Loans: Yes The Rates Are Higher!
January 27, 2008
Typically Cash Advance Payday Loans have no credit checks, and a very minimal amount of paper work.
They are mainly concerned that you are, whom you say, you are. And, that you have the income, and the ability, to pay back the loan. And, that you have a checking account.
Cash advance loans are designed for emergency situations! When you are short on cash and need money fast! Family emergencies, unexpected car repairs, overdrafts, telephone reconnection, unexpected bill, etc.
The Cash Advance Payday Loan industry is the subject of much criticism. Most of it coming from members of the regular established lending industry, banks and credit unions. This is because of the interest rates and fees involved with these short-term payday loans.
Typically if you receive a $100 Cash Advance? 7 to 14 days later you will be required to pay back about $125.
That may not sound so bad, especially if you really needed that $100 at the time, and know you can easily pay it back plus the extra $25 when you get paid from your job.
Buying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy
January 26, 2008
If you have a recent bankruptcy on your credit and are looking to get financing for a home, there is hope. Buying a home with bad credit will just put more emphasis on the other two factors needed to get a mortgage loan, which are; income verification and a down payment.
After bankruptcy most lenders want you to wait at least 2 years from the time of the bankruptcy discharge before they will consider you for a mortgage loan. After the two year waiting period is over, you should be able to get financing easily. You should also be able to get 100% financing as well. You can usually achieve this as long as at least most of your payments have been reported to the credit bureau as having been paid on time since the discharge of your bankruptcy.
If you are looking to get a mortgage loan after bankruptcy sooner than the 2 years from the time of discharge, you will need to have almost flawless payment history since your bankruptcy discharge. Also, you may need to have a down payment. If you have even 3-5% to use as a down payment, that may be enough to help you get approved.
The Three Largest Factors In Your Interest Rate
January 25, 2008
There are three major factors that affect how much you pay for a loan. Understanding these factors can save you time, money and frustration.
1. The Federal Reserve Discount Interest Rate.
Banks and other lending institutions borrow money from the Federal Reserve Banks. The discount rate is the interest rate a Federal Reserve Bank charges eligible financial institutions to borrow funds on a short-term basis. This rate is set by the boards of directors of the Federal Reserve Banks. The discount rate has a direct effect on the "Prime Interest Rate", which is the interest rate on short-term loans that banks charge their commercial customers with high credit ratings. You can get live information on the current Prime Rate at www.FedPrimeRate.info.
Of the three major factors that affect your interest rate, this is the one you have the least amount of control over.
2. Your FICO Score and Credit Report.
There are companies that gather and sell information about information on where you work and live, how you pay your bills, and whether you’ve been sued, arrested, or filed for bankruptcy. They are called Consumer Reporting Agencies (CRAs). The most common type of CRA is the credit bureau. Potential lenders will get your credit report from the credit bureau.
Secured Personal Loans - What You Need To Know About
January 25, 2008
Loans that are secured against property are called secured personal loans. They are suitable for when you are having difficulties getting an unsecured personal loan, are trying to raise a large amount, or you just have a bad/poor credit history. Usually, lenders are more flexible when it comes to secured personal loans, which makes them worth taking into consideration if you want to buy a new car, make home improvements, or take the luxury holiday of your life.
Here is a list of benefits of a secured personal loan:
You have lower monthly repayments than an unsecured personal loan
You can borrow more money
Repayments can be spread over a longer period of time
Because a secured personal loan is a type of loan available to people with securable assets (usually homes), they are often referred to as ‘homeowner loans’ or just ‘home loans’.
To be eligible for secured personal loans you don’t even have to own your own home outright. You can put the proportion of the home that you own up as a security, if you have a mortgage.
Non-conforming Home Loans vs Conforming Loans
January 24, 2008
The simple definition of a “non-conforming home loan” is: You have a job and can make the payments. Your credit is used only to determine your interest rate and the loan amount to value of the home ratio. This ratio is referred to as your “LTV” or “Loan To Value”. There are many lenders who will lend to borrowers who are in foreclosure or who are currently in a bankruptcy.
Borrowers who are in these situations often have the worst possible credit. Lenders protect themselves by keeping the LTV low, about 65% to 70% of the appraised price of the property. By doing this, the lender is very well protected. If the borrower goes into foreclosure again with the new lender, the LTV is low enough that the lender can take the property back, sell it at a discount for a quick sale, and still pay off the debt.
The lender rarely cares if there are other mortgages against the property, as long as the lender is in the first position. You see, when a lender takes a property back from a borrower the first lien position gets the proceeds of the sale first, then the second, then the third, etc. Rates for these types of loans are usually 1% to 6% higher that conforming rates.
