It’s no secret that your credit rating can come up in your job search. Experts say that 60% of employers check credit before making job offers, and 25% say that a bankruptcy or other severe credit event can keep you from getting a job with them. So those who walk away from mortgages or strategically default would be wise to keep that in mind if they plan on getting a new job in the next few years. Continue reading ‘Can Foreclosure Get You Fired?’
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According to a recent report from the Boston Federal Reserve Bank, credit card fee structures effective charge the poor in order to reward the rich.
The study found that households earning more than $150,000 a year gain an average annual subsidy of $756 from credit card companies, while those earning $20,000 or less pay out an average $23 a year. How does this happen? Continue reading ‘Robin Hood Gone Bad: Do Credit Cards Rob the Poor?’
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If you’re trying to save your home from foreclosure, you may be desperate. And hearing all the horror stories in the media and from your neighbors doesn’t give you a lot of hope for getting a modification. So, when a company promises huge results, fast, shouldn’t you jump on the chance before you end up homeless? The FTC says just say no to companies that charge up front. Continue reading ‘Mortgage Modification: Does Outside Help Make a Difference?’
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The just-passed mortgage reform bill contains a little-publicized provision that could make a big difference to those people with bad credit. In the future, if you get turned down for a loan of offered one with worse terms than you applied for, you get a credit report and your credit score. That’s a bigger deal than it appears. Here’s why. Continue reading ‘Mortgage Reform: Get Your Credit Score for Free’
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If you have bad credit, mortgage lenders are hard to come by these days. But that doesn’t mean you have no hope of getting a better deal on your home loan. If you have a bad credit mortgage, mortgage rates may be much lower than the rate on your current mortgage. As long as you have some home equity, you may be able to improve your situation. Continue reading ‘Bad Credit Mortgage Refinance Alternative: Modification Through LoanPort’
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Missing a payment is the surest way of dropping your credit score. but what about other transgressions like going over your limit on your credit card or bouncing a check? Continue reading ‘Over Limit on Credit Cards: Does that Drop FICO Score?’
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According to FICO, nearly 43.4 million people now have a credit score of 599 or below. That’s not great for those who want to increase access to credit an decrease the cost of borrowing.
One of the biggest factors in credit scoring models is called “credit utilization.” That means the amount of your account balances versus the total amount of credit available to you. it’s expressed as a percentage. So, if you have balances of $6,000 and credit limits of $10,000, your utilization is 60%. Experts say an optimum credit utilization ratio is 30% or less. So, you could increase your credit score over time by paying your balances down to less than 30% of your total credit limits. Or, you could try a quick and dirty solution. Continue reading ‘Increase Your Credit Limit, Increase Your Credit Score’
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All the hype over FHA’s “reforms” is missing a few facts. Yes, FHA now requires a 580 or better credit score if you want to put 3.5% down instead of 10%. And yes, those with scores less than 500 are now ineligible for FHA financing. But have things really changed in practice? No, they have not. Continue reading ‘FHA Reform: Can You Really Get a Loan with a 500 Credit Score?’
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You bought your home with a 10% down payment, thinking in a couple of years, you’d have enough home equity to refinance and dump the mortgage insurance policy. But it’s been four years and your home is worth less than it was when you bought it! Are you doomed to pay for mortgage insurance forever?
Continue reading ‘My Home’s Value Has Dropped: Will I Pay Mortgage Insurance Forever?’
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When you buy a new home ore refinance your mortgage, bad credit lenders require that you show proof of acceptable hazard insurance. This protects you and the lender in case a fire or other disaster destroys your home. But what if money gets tight and you can’t swing the insurance payments? Can you let the policy go until you’re back on your feet? I’m afraid not; it will cost you a lot more. Your lender will make sure of that. Continue reading ‘What Happens if You Let Your Homeowners Insurance Lapse?’
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