Stafford No Credit Loan
March 6th, 2010 by carla_guillermo
If you are looking for a student loan with no credit, your first option would be the Stafford no credit loan. This kind of loan is further divided into two categories namely subsidized and unsubsidized which are based on the financial situation of the applicant. For the students that have severe financial restrictions, the subsidized Stafford loan is the appropriate kind of loan. One must just prepare concrete proof of his financial difficulties and after being approved, the government will shoulder all the interest payments of 5% until the applicant graduated and exceeded the six-month repayment grace period. On the other hand, the unsubsidized Stafford loan is for any student of any financial condition and the applicant will shoulder all the fixed interest payments.
pics via squidoo.com
5 Essential Tips To Steer Away From Home Foreclosure
March 4th, 2010 by aclazaro
1. Do not ever spend the house payment.
2. Always take the time to save time. It would help if you seek some help from counselors so that you won’t waste time dealing with the tough bank process.
3. Make sure that you solve your problems the proper way. Remember that the one at stake here is your home. Know the entire process of bank loan modification for you cannot afford to play the guessing game at this point in time.
4. Take it easy and see things as simple and not too complex. The Internet is such a great venue for resources to help you gather up all the right information and let you be aware of the current conditions you are in.
5. Consider having an expert on this topic by your side. The bank has their own team of experts. It won’t hurt if you would have your own too.
Photo via flickr.com
Basics: Inside a credit report
February 4th, 2010 by carla_guillermoCredit reports differ from one state to another as well as from one agency to another agency. This article would tackle the general components of a credit report. First is the identification and the employment information of the client that include name, spouse’s name, birth date, Social Security number, current and previous employer, home ownership status, addresses and income. Next would be the payment history from each account that you have from different creditors, the extended credits, balances and payments.
The creditors, businesses and individuals that asked for your credit history in the past can also be seen in the credit report. Lastly, the public record from state and county courts may also appear in the credit report that include bankruptcies, foreclosures, suits, wage attachments, tax liens and judgments.
Basics: Credit Reports
February 3rd, 2010 by carla_guillermoIf you have been into any financial problems, then having a credit report is not new to you. For those that wonder what a credit report is, it is a detailed record of the credit history maintained by one of three main US credit reporting agencies. It is like a folder with all the financial activities done by a client.
For example, the lender alerts the agencies when you applied for a loan by sending them the transaction details. The details now can be seen on the folder as well as other previous transactions that you made with your credit card whether you miss a payment or not, etc. The reporting agencies will summarize all the data and will reply to the lender on what is your financial status. The lender in the end will use the information if he will grant you a loan or not.
Credit Clinic – Do you Really Need Them?
January 29th, 2010 by daphne reyes
Higher credit score and better credit report, these are a couple of promises these credit clinics will give you. Have you asked them how they will do it? Have you asked them if they have some direct connections with the credit reporting agencies that there are things that they can do that you can’t do for yourself? Do they have some kind of powers that will make the credit reporting agencies policies faster? Do they have a special number that they call that is given any special treatments?
You better think twice about getting involved with credit clinics and spending thousands of dollars. You just might put yourself in much more debt than the before the time you got them involved. Just so you know, they don’t have special access to credit reporting agencies. Everything that they do, you can do yourself and save thousands of dollars. The number they call is just the same number that you yourself can call. The documents you need to fix your credit? It doesn’t make it less if it was thru them and you can send them yourself to the same number or address that they send it to.
There are only 2 keys to fixing your credit. Monitor your credit report on a regular basis, for any inconsistencies; call the credit reporting agency directly. It will take about 30 days but that’s just the same time it will take with the credit clinics. Not unless they have an illegal contact inside who fixes things for them, they are not special. Like I said, save THOUSANDS and do it yourself. Anyway, who knows your credit history better than you do?
Understanding Your Debt to Income Ratio
January 28th, 2010 by daphne reyes
Understanding Your Debt to Income Ratio
Firstly, you need to know what debt ratio is. Look at your monthly gross income, before taxes and contributions. This is how much you make per month, not how much you take home. What you take home is net income. Debt-to-income ratio is the percentage of a consumer’s monthly gross income that goes toward paying debts.
There are two kinds of debt to income ratio:
FRONT RATIO indicates the percentage of income that goes toward housing costs, which for renters is the rent amount and for homeowners is PITI (PITI includes mortgage principal and interest, mortgage insurance premium, hazard insurance premium, property taxes, and homeowners’ association dues.
BACK RATIO indicates the percentage of income that goes toward paying all recurring debt payments, including those covered by the first DTI, and other debts such as credit card payments, car loan payments, student loan payments, child support payments, alimony payments, and legal judgments.
Debt Consolidation
January 27th, 2010 by daphne reyes
Debt consolidation can be done by taking a second mortgage or a home equity line of credit and using that money to pay off higher interest debt. This can significantly lower your interest rate, and even make your interest payments tax deductible. However, be sure you are committed to paying off debt and making payments on time before you do this, since you are putting your home at risk when you transfer unsecured credit card debt into a mortgage loan. You wouldn’t want to lose your home. Double check, re-calculate and make sure that you will be able to pay it off before taking this step.
Debt consolidation can also be done thru credit card balance transfers to take advantage of a promotional rate. Often, balance transfer offers will provide you with a low rate- between 0% and 5% for a select period of time. You can transfer balances up to the full amount of your credit line by requesting a balance transfer check or having the new creditor pay the old creditors directly. Alternatively, you can apply for a personal loan and use that to pay off higher interest loans.
Refinancing?
January 21st, 2010 by daphne reyes
Most people who borrow more than 80 percent of a home’s value pay private mortgage insurance, which protects the lender in case of default. Let’s say the owner of a $150,000 home who wants to combine a $110,000 first mortgage with a $20,000 home equity loan. The combined, refinanced loan would be for more than 80 percent of the home’s value, so the borrower would have to pay PMI. Such a borrower would have to consider the PMI payment when deciding whether refinancing would save money.
Refinancing might be a bad deal for a homeowner who has been paying the same mortgage for many years. If you have been paying for 20 years on a 30-year mortgage, refinancing for another 30 years might result in a lower monthly payment. But you would be making those payments for 30 more years instead of 10.
The bottom line is that you have to look at the bottom line: figure out the costs of refinancing and compare those with your existing payment and calculate how long it would take to recoup the costs. If you don’t plan to stay in the house to make it worthwhile, stick with your existing mortgage.
Understanding What a Credit Reporting Agency Is
January 19th, 2010 by daphne reyes
There are a lot of misconceptions about credit reporting agencies. Firstly, they exist and are being paid by financial institutions to keep and gather information about you. They are not there to disclose information just to anyone. Only those that are their clients can view your information. For what purpose, you may ask. It’s what they use to see if you will be able to keep your word or if you are capable of paying them what you you’re trying to borrow from them.
What can they see? It includes basic information like your current name, previous names, current address and previous addresses. It enlists your current and closed credits within the past 7-10 years. It also includes information on judgements and if you’ve had any credits that went to collection agencies whether it’s still outstanding or paid off within the past 7-10 years.
Now, credit reports from Equifax, Experian and Trans Union may differ from each other. It’s because each of these credit reporting agencies have their own set of clients. One financial institution may be a client of two of them but not of one of them. That makes the other one different. Given this, it makes your credit score from that credit reporting agency different from the other two.
It is advisable for you to monitor each credit report on a regular basis to make sure that their information is accurate.
Difference between a FICO Score and a Credit Score
January 19th, 2010 by daphne reyes
FICO software is used by the three credit reporting agencies (Equifax, Experian, and Trans Union) to produce a credit score. This does not make a FICO Score the same as the credit score. It is simply because a FICO Score is what FICO produces when they consolidate the information from all three credit reporting agencies. Each credit reporting agency has their own way of computing for their credit score. That is why each of them has their own different credit score, not even the same as your FICO Score. They may be using the same FICO software but they have different information on each credit report, all the more different from the consolidated FICO Score. As previously mentioned on my other article, each credit reporting agency may have different information depending on which financial institutions are and are not their clients.
You may get your FICO Score from MyFICO.com and you may contact Equifax, Experian and Trans Union to get their individual credit scores. We can’t tell which credit score creditors are most likely depending on but it’s always safer to monitor all on a regular basis to make sure that the information they have are accurate.