In 1971, the numbers for everything seemed to be much lower. The average house cost $25,000, the average car cost about $3,500, and the interest rate on a 30-year fixed mortgage was 3.31%
Today prices are much different, with that house costing the average citizen over $225,000, and that car coming in at $28,000… but that mortgage rate is just as low today as it was over 40 years ago. (more…)
Are you afraid of debt consolidation because you worry that your credit rating is going to be negatively affected? If so, then it is time to take a reality check. Debt consolidation loan is definitely a positive step towards improving credit rating. Not convinced? Here are some facts that might sway your opinion.
After the home ownership bubble burst, banks put draconian rules in place for home lending that shut many people out of the market. Not only did home buyers need a 20% down payment to qualify, but they also had to have a credit score of at least 760. Few people could hit those lofty requirements and either failed to meet one or the other. Despite a time of record low mortgage rates, the majority of potential buyers just couldn’t qualify for a mortgage, which kept the housing market in the doldrums for years. This year that all may be finally changing. (more…)
When you’re caught between a financial rock and a hard place, you might not be able to make your mortgage payments. You may find yourself having to make a choice: face foreclosure or sell your home. Foreclosure is the worst thing that can happen. You’ve lost your home and tarnished your credit in the process. You can try to sell your home before it goes into foreclosure, but if the market value of the home is lower than what you owe on the mortgage, you’ll still be in hot waters with the bank. If this is the case, you have another option: a short sale. (more…)
So, you’ve got bad credit and don’t know where to start to get back on track. Credit repair is not an easy task and you’ll need realistic short-term and long-term goals to bring your score up from the depths. Don’t be fooled by promises of fast recovery, repairing your credit score can take months or even years in certain cases. You must understand that repairing your credit is going to take considerable time and do not be disappointed if you don’t get instant gratification. Fear not, it’s not all doom and gloom. Recovery is not impossible as long as you follow a good plan. Here’s a few ways to get started. (more…)
Few people understand the impact that divorce may have on their credit scores and future lending potential. Just because a couple qualifies for credit does not mean each partner will qualify for credit individually once the union is dissolved. Lenders are not as lenient as they once were when handling divorced spouses; both people are typically liable for an account’s repayment, regardless of who created the debt in the marriage. If an ex-spouse becomes vengeful and refuses to pay their share, the partner will invariably suffer the consequences unless they take precautions to make sure they are not held liable. (more…)
Do you want to apply for a loan or a mortgage, but don’t know if you’ll qualify because your credit score is too low? Many people have a hard time maintaining good credit and are struggling to survive in an era where your credit score is as important as the balance of your checking account. Having good credit grants you, amongst other things, access to higher credit limits, easier and faster approval for credit, and even a better chance at getting a job. As you can tell, credit is crucial. Do you know how to boost your credit score? If you don’t, here are 19 things you can do to boost and maintain a high credit score. If you do know what to do, take a look anyway. Some of these tips may surprise you. (more…)
Most people think that they’ll be through with student loans by the time they retire, but that’s not always the case. According to the U.S. Treasury Department, the number of people who had their social security paychecks garnished to repay federal student loans in 2012 was 122,056 versus just 6 in 2000. Obviously, there are far more seniors who are getting into trouble with student loan debt than ever before. Part of the reason for this is federal student loans cannot be discharged, even in the case of bankruptcy, unlike other types of debts like credit cards or mortgages. (more…)
Could delinquency actually be a good thing? Experian Automotive released an industry wide analysis of automotive credit trends for the fourth quarter of 2012 and found that their 60-day auto loan delinquencies had increased from the same period in 2011. Although the upturn wasn’t high, going from 0.72 to 0.74 percent, the findings still came as a surprise since the last time an increase was seen was in 2009 when the rate was 0.94 percent. This comes as good news for the average borrower, since more delinquencies means more lenders are easing up on their requirements. (more…)
After ten years of banning payday lending in North Carolina, a new bill was put forth to allow the practice once again. Payday lending has been under immense scrutiny over the years by federal regulators and some states, like North Carolina, just decided they were not willing to allow payday lending within their borders. However, the new bill proposed has put into place some restrictions that will make payday lending a viable alternative to other types of lending within the state. (more…)
