credit history – How To Occupy http://howtooccupy.org/ Sat, 12 Mar 2022 01:23:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://howtooccupy.org/wp-content/uploads/2021/07/icon.png credit history – How To Occupy http://howtooccupy.org/ 32 32 Want a better credit offer? Improve your CIBIL score! https://howtooccupy.org/want-a-better-credit-offer-improve-your-cibil-score/ Sat, 12 Mar 2022 01:23:00 +0000 https://howtooccupy.org/want-a-better-credit-offer-improve-your-cibil-score/ Cibil Transunion Credit Score New Delhi: Credit score, also called CIBIL is a key factor for lenders when deciding on applicant eligibility and the applicable interest rate before approving loans and issuing credit cards. CIBIL — Credit Information Bureau (India) Ltd – the score is a three digit number, ranging from 300 to 900, which […]]]>

Cibil Transunion Credit Score

New Delhi: Credit score, also called CIBIL is a key factor for lenders when deciding on applicant eligibility and the applicable interest rate before approving loans and issuing credit cards.

CIBIL — Credit Information Bureau (India) Ltd – the score is a three digit number, ranging from 300 to 900, which determines a person’s creditworthiness. According to RBI, all lenders must verify the CIBIL score of each loan/credit card applicant at the time of assessment. A low CIBIL score reflects poor credit management skills.

Here are some important points to keep in mind to improve your credit score:

Timely credit payments

Failure to pay bills can reduce credit rating. Failure to meet deadlines can result in a significant decline as this indicates that you are not a responsible borrower. Since credit scores reflect credit history, a late payment could affect your report for years.

Lower balances

Remember that you should never stretch your expenses and only spend what you can repay before the billing date. Pay off your debts as soon as you can and control your card spending. Lower balances, which include unpaid dues on loans and low or zero balances on credit cards, can positively affect your credit score. It can also help you better manage your finances.

Keep your old credit card account

Switching to new credit cards because of lucrative offers isn’t always a good idea. You have to decide carefully if the new card gives you good reason to switch. If you have a credit card account that is prudently and well managed, it is better to keep it for a long time because the longevity of such an account can increase the CIBIL score. A good repayment history reflects your credibility as a lender.

Report and resolve inaccuracies

If you discover a discrepancy in the credit report, call for rectification if you have valid proof to back up your point. Disagreements and mistakes can happen, so you’ll want to have them rectified as soon as possible to avoid future problems. The recourse for rectification must be sent within a time limit set by the lender or the agency/financial institution. Ideally, you shouldn’t apply for new credit until old credit score disputes are resolved.

Use a secure card

Credit score can increase by using secured credit card offered by many banks such as ICICI Bank, CitibankSBI, Axis Bank etc These cards are issued against a fixed deposit of a nominal amount. Timely balance payments can increase the CIBIL score. So if, due to certain circumstances, you are in default, your bank will immediately liquidate the fixed deposit or other deposits against which you received the card and the debt will be repaid. This option is ideal for those with low credit scores or those with no credit history. It can improve your credit history and gradually increase your credit score.

]]>
March is National Credit Education Month – The Greenville Advocate https://howtooccupy.org/march-is-national-credit-education-month-the-greenville-advocate/ Fri, 04 Mar 2022 18:05:22 +0000 https://howtooccupy.org/march-is-national-credit-education-month-the-greenville-advocate/ by Aisling Fields For many people, credit is a scary thing to think about. It’s mainly because they don’t always understand it. National Credit Education Month is the perfect time to learn more about the ins and outs of credit. “Understanding what credit is, how it works, and the impact it can have on you […]]]>

by Aisling Fields

For many people, credit is a scary thing to think about. It’s mainly because they don’t always understand it. National Credit Education Month is the perfect time to learn more about the ins and outs of credit.

“Understanding what credit is, how it works, and the impact it can have on you now and in the future is an important step in becoming financially fit.” said Emily Hines, regional humanities officer for the Alabama Cooperative Extension System.

A person’s credit is based on a score between 300 and 850. This score lets a potential lender know if someone is credit worthy. Scores are based on credit history, which is affected by a number of things. These elements include the number of open accounts, debt levels, payment history, etc.

The higher the score, the more likely a person is to get a loan. Indeed, credit scores are used to determine whether someone is likely to repay a loan on time.

There are many things a credit score is needed for, like buying a car, saving on insurance, or buying a house. To do all of these things, many people need to take out a loan from places like a bank or a credit company.

It is important to understand what builds or rebuilds credit, as well as what harms it. Many people don’t realize how easy it is to build credit if done correctly.

“Making your payments on time as agreed and keeping your balances low will have a positive impact on your credit,” Hines said.

When starting to build credit, it may be in a person’s best interest to start small and open a single credit card. Try putting small amounts on this card, like gasoline, once a month. Remember to keep a low balance and always pay it off on time. Doing these articles is a big step in the right direction.

Just as people can build their credit, they can hurt it even faster. Credit can be most affected by non-payment of scheduled payments. Whenever a loan is not repaid at the agreed rate and time, there is a risk of credit damage.

“If you want to learn more about your credit, Extension’s Financial Resource Management and Workforce Development team offers financial education classes throughout Alabama,” Hines said.

The Regional Extension Officer in your area can help you enroll in these educational courses. More information on credit is also available in the publications Alabama Extension How to Build or Repair Credit and Credit Report versus Credit Score.

]]>
Understanding Your Credit Score: What Makes Up Your FICO Score https://howtooccupy.org/understanding-your-credit-score-what-makes-up-your-fico-score/ Sun, 27 Feb 2022 16:07:28 +0000 https://howtooccupy.org/understanding-your-credit-score-what-makes-up-your-fico-score/ By SociallyIn, Sponsored Content Your credit score plays an important role in your financial situation. It can affect your ability to get credit cards, rent an apartment, qualify for a mortgage, or even find a job. Your FICO score is made up of five different factors: payment history, amount of debt, length of credit history, […]]]>

By SociallyIn, Sponsored Content

Your credit score plays an important role in your financial situation. It can affect your ability to get credit cards, rent an apartment, qualify for a mortgage, or even find a job. Your FICO score is made up of five different factors: payment history, amount of debt, length of credit history, new credit accounts, and types of credit used.

In this 2nd article in our series on credit repair, we will discuss each of these factors in detail and explain how you can improve your credit score!

What is a credit score?

Your credit score is a three-digit number that reflects your creditworthiness. It’s based on information in your credit report, which is a record of your borrowing and repayment history. Lenders use your credit score to decide whether to lend you money and at what interest rate.

Factors That Influence Your FICO Score

FICO scores are determined on the following five factors:

Factor #1: Payment History

Payment history is at the top of the list for a reason. This is the most important factor that determines FICO scores. It represents 35% of your credit score and includes all of your credit accounts, whether you paid on time or not. Late payments can stay on your credit report for up to seven years!

If you’ve missed a few payments in the past, don’t worry! You can always improve your score by catching up on your payments and maintaining a good payment history in the future.

Factor #2: Amount of Debt

The amount of your debt also plays a big role in how low or high your FICO score is. It represents 30% of your credit score and includes both your total credit limit and the amount you owe on your credit cards.

If you have a lot of debt, try to pay it off as quickly as possible. You should also avoid opening new credit card accounts if you’re having trouble making payments on your current accounts.

Factor #3: Length of Credit History

Next is the length of your credit history. It represents 15% of your FICO score and includes the age of all your credit accounts and how often you used them.

You can improve your score by keeping an old credit account and using it frequently. Just be sure to pay the full balance each month. You can also establish a good credit history by opening new accounts and using them responsibly.

Factor #4: New Credit Accounts

The fourth most important factor in your FICO score is new credit accounts. It represents ten percent of your score and includes the number of new credit accounts you have opened recently.

If you’re considering opening a new credit account, be sure to do so responsibly. Don’t ask for too many cards at once and make sure you can afford to pay off the debt.

Fifth factor: Types of credit used

The fifth most important factor in your FICO score is the type of credit used. It represents ten percent of your score and includes both installment loans and revolving lines of credit.

You can improve your score by using a variety of different types of credit products. This shows lenders that you can manage different types of debt responsibly.

The two types of debt that affect FICO scores

Photo courtesy of SociallyIn

In general, credit files contain two types of debt: installment credit and revolving credit.

Installment debt is a loan that you repay in fixed monthly installments over a predetermined period of time. An example of an installment loan would be a car loan or a mortgage.

Revolving credit is a line of credit that allows you to borrow up to a certain limit and then pay off the balance over time. Credit cards are the most common type of revolving credit.

Types of accounts that affect credit scores

There are five types of credit accounts that can affect your FICO score:

  • Credit card
  • Mortgages
  • Student loans
  • Car loans
  • Personal loans

Credit card

A credit card is a type of revolving line of credit. It lets you borrow money up to your limit, and you have to pay it back every month. Credit cards are considered high-risk loans, so they usually have a higher interest rate than other types of loans.

Mortgages

A mortgage is a type of installment loan. It is a loan used to purchase a house or property. Mortgages generally have a lower interest rate than other types of loans and longer repayment terms.

Student loans

Photo courtesy of SociallyIn

A student loan is a type of installment loan. This is a loan used to pay educational costs, such as tuition and books. Student loans generally have a lower interest rate than other types of loans and longer repayment terms.

Car loans

A car loan is a type of installment loan. This is a loan used to purchase a car or vehicle. Car loans generally have a lower interest rate than other types of loans and repayment terms are shorter.

Personal loans

A personal loan is a type of unsecured loan. It is a loan that does not require any collateral, such as a house or a car. Personal loans generally have a higher interest rate than other types of loans and repayment terms are shorter.

What can damage your FICO score?

There are several things that can damage your FICO score. Let’s discuss each below.

  • Missed Payments – Missed payments are one of the biggest things that can hurt your credit score. If you miss a payment on a loan or credit card, it will negatively affect your score.
  • High Debt Levels – Another thing that can hurt your credit score is high debt levels. If you have too much debt relative to your available credit, it will lower your score.
  • Too Many New Accounts – Another thing that can hurt your score is opening too many new accounts in a short time. This tricks lenders into believing that you are in desperate need of credit and may be a riskier borrower.
  • Credit Usage – The fifth thing that affects your FICO score is the amount of available credit you use. If you use a lot of your available credit, it will lower your credit score.
  • Default Accounts – If you have an account in default, it will hurt your credit score. A default account is an account where you have not made a payment for at least 90 days. Examples of these are foreclosure, bankruptcy, repossession, write-offs and settled accounts.

How to improve your credit score

There are five ways to improve your credit score:

  • Pay your bills on time – The easiest way to improve your credit score is to simply pay your bills on time. This shows lenders that you are responsible and that you can manage your debts responsibly.
  • Keep your debt level low – Another easy way to improve your score is to keep your debt level low. Try not to borrow more money than you can afford to pay back each month.
  • Don’t open too many new accounts at once – Another thing you can do to improve your score is don’t open too many new accounts at once. Lenders may see this as a sign of financial instability.
  • Use less of your available credit – The fourth thing you can do to improve your score is to use less of your available credit. Try not to use more than 30% of your total limit, and even less if you can.
  • Have a good credit history – The fifth and final way to improve your score is to have a good credit history. This means always paying your bills on time and not borrowing more money than you can afford to repay.
  • Pay any outstanding balance – Another way to improve your credit score is to pay any outstanding balance. This will show lenders that you are serious about improving your credit and are ready to act.
  • Dispute errors on your credit report – Finally, if you think there are errors on your credit report, you can dispute them. This will help improve your score because it shows lenders that you are taking steps to improve your credit.

This webinar provides a more in-depth look at credit repair than we have time to cover today, so you might want to check it out for a little more information on specific steps you can take yourself. same :

Your FICO credit score reflects your overall risk as a borrower. Lenders consider all five factors when making their decision, so it’s important to understand them all! This makes credit score checking an important task that you as a borrower should pay attention to. By understanding how your score is calculated, you can take steps to achieve a good credit score and make your life easier financially. Thanks for reading and stay tuned for future articles in our credit repair series!

]]>
Start a Profitable Credit Repair Business with Free Webinar’s Simplified Software https://howtooccupy.org/start-a-profitable-credit-repair-business-with-free-webinars-simplified-software/ Tue, 22 Feb 2022 05:04:13 +0000 https://howtooccupy.org/start-a-profitable-credit-repair-business-with-free-webinars-simplified-software/ Credit Repair Cloud hosted an informative webinar on starting a profitable credit repair business using its user-friendly software and, for a limited time, business owners and emerging entrepreneurs can watch the webinar for free at https://creditrepaircloud.grsm.io/financialserenity1. Los Angeles, USA – February 22, 2022 — Business owners and emerging entrepreneurs interested in learning more about the […]]]>

Credit Repair Cloud hosted an informative webinar on starting a profitable credit repair business using its user-friendly software and, for a limited time, business owners and emerging entrepreneurs can watch the webinar for free at https://creditrepaircloud.grsm.io/financialserenity1.

Business owners and emerging entrepreneurs interested in learning more about the challenges of starting a profitable credit repair business using simplified credit repair software can watch an exclusive webinar on the secrets of building a profitable credit repair business on the Credit Repair Cloud website: https://creditrepaircloud.grsm.io/financialserenity1 .

In addition to answering questions about the secrets to building a profitable credit repair business, Credit Repair Cloud also touched on finding that first customer fast during the webinar. Some of the most surprising insights explored during the Credit Repair Cloud presentation included the secrets to building a profitable credit repair business that few business owners and emerging entrepreneurs are aware of.

WHAT EVERYONE SHOULD KNOW ABOUT CREDIT

As recently as a few years back, the term “credit score” was not very commonly used in American society. While there were those who understood the term and its purpose, the mass majority, although realizing that there was a system out there monitoring their credit, they had no term to attach to it.

Today, however, due to a number of factors such as the increase in identity theft and mass media marketing campaigns, very few Americans are unaware of the term “credit score”. “.

A credit score is a number between 300 and 850 and is based on a statistical analysis of an individual’s credit activity. It is used to represent the solvency of an individual, that is to say the probability that he pays his debts. A credit score is based on official credit report information, which usually comes from the three major credit bureaus (TransUnion, Experian, Equifax).

Credit institutions, such as banks, finance companies, mortgage lenders, and credit card companies, use an individual’s credit score to assess the potential risk posed by lending money to that individual. . Lenders use credit scores to determine who qualifies for a loan, at what interest rate the loan is granted, and what credit limits are determined. Although there are many others, such as the VantageScore, the most well-known scoring system in the United States is the FICO Score (Fair Isaac Corporation), particularly in the mortgage industry.

Under the Fair and Accurate Credit Transactions Act (FACT), every legal resident of the United States is entitled to a free copy of their credit report from each credit reporting agency once every twelve months. To guard against inaccurate information or fraud more often than once a year, one can request a report from various credit reporting agencies available online. This information is available on a number of websites that offer a free credit report, usually associated with using their services for 30 days before a monthly fee is involved. Fees are nominal compared to the need to protect personal credit in today’s high-tech society where identity theft is increasingly prevalent.

UNDERSTANDING CREDIT REPAIR

Usually, the credit score ranges from 300 to 750, but a good credit score is above 700. Many people have their credit score between 600 and 700, which is considered an average credit score. Credit scores below 600 should be repaired immediately. Better credit scores pave the way for an improved lifestyle.

Credit repair companies charge reasonable fees while rendering valuable services, as discussed in the free Credit Repair Cloud webinar. Although potentially life-changing, credit repair requires a great deal of patience and experience, with the best results often occurring 45-90 days after the initial audit.

Most people with bad credit think there is nothing they can do about it. They mistakenly believe that they have to live with their bad credit for a long time. The truth is, Americans don’t have to live with bad credit or pay astronomical fees to get their credit repaired.

Credit Repair Cloud’s simplified all-in-one software helps entrepreneurs start a credit repair business to help rebuild those damaged credit profiles. A good credit history can make life easier and more enjoyable in every way imaginable. Take action now to have that positive impact in the community.

As seen on ABC, CBS, NBC, and Inc.500, Credit Repair Cloud provides EVERYTHING you need to start or improve a life-changing credit repair business.

In addition to the secrets of starting and scaling a successful credit repair business, the full agenda for this informative webinar also includes:

Find That First Client Fast – How to find people who are more than willing to pay and land that first client within 24 hours, even with ZERO experience.

Dispute Process Template – How to use a step-by-step “Dispute Process Template” to get EASY credit repair results without being a credit expert.

For more information and to register for free access to the full video, interested business owners and emerging entrepreneurs can visit the website at https://creditrepaircloud.grsm.io/financialserenity1 .

Contact information:
Name: Support Staff
E-mail: Send an email
Organization: Credit Repair Cloud
Address: 12517 Venice Blvd., Los Angeles, CA 90066, USA
Phone: +1-800-944-1838
Website: https://www.creditrepaircloud.com/

Build ID: 89065180

countex tracking

COMTEX_402836281/2773/2022-02-22T00:01:05

]]>
Know the Score – Albuquerque Journal https://howtooccupy.org/know-the-score-albuquerque-journal/ Sun, 20 Feb 2022 07:05:58 +0000 https://howtooccupy.org/know-the-score-albuquerque-journal/ Because interest rates are low, credit companies may make tempting offers to entice you into taking out a loan or getting a credit card. Take your time to make a decision that is right for you and your financial health before going ahead with such offers. What is a credit score? A credit score is […]]]>

Because interest rates are low, credit companies may make tempting offers to entice you into taking out a loan or getting a credit card. Take your time to make a decision that is right for you and your financial health before going ahead with such offers.

What is a credit score?

A credit score is a three-digit number that summarizes information on your credit report. The number changes depending on what is happening in your financial life.

There are two different names for credit score, FICO or VantageScore. The FICO score is named after the company that invented this three-digit scoring system in the mid-1980s, Fair Isaac Inc. The three major credit reporting agencies created their own scoring system, called VantageScore, designed to produce a more consistent score across all three credit reporting agencies. Each credit reporting agency collects different financial information about you and therefore reports a different credit score.

Credit scores are designed to estimate your likelihood of repaying a debt.

What are the ranges?

From NerdWallet:

• A score of 720 or higher is generally considered excellent credit.

• A score between 690 and 719 is considered good credit.

• Scores between 630 and 689 are fair credit.

• And scores of 629 or less are bad credit.

Other sites had different ranges and names with similar messages about the meanings.

What factors come into play?

• Pay bills on time. Any late payment can affect your score. Late payments of 30 days or more stay past due in your credit history for years.

• How much you owe. Just because you have a high credit limit on your credit card doesn’t mean you should use it. The sites I looked at recommended using 30% or less of the credit limit. Lower is better.

• Credit age. The longer you have credit, the better your score.

• Composition of credit. Having more than one type of credit such as a loan and a credit card.

• How long ago you applied for credit. When you apply for credit, an investigation is done on your credit file and may cause your score to drop temporarily. For example, applying for a new credit card that offers airline miles, cash rewards for signing up, or other incentives could negatively affect your credit score.

What does this really mean?

The score can affect your approval for a loan or credit and the interest rate you pay on the loan. People with high scores generally receive lower interest rates on mortgages, credit cards, and loans because they are considered to be at low risk of default. Average scores will likely qualify for new credit, but not ideal rates. Low scores mean a damaged credit history, such as defaults on different types of credit. It can also be the result of bankruptcy, which stays on a credit report for seven years.

Establish credit

Start small. Your bank, credit union, or other financial institution with which you have an account may offer you a credit card. When you are approved for a loan or credit card, make payments on time and in full. Credit is also established by paying your utility bills on time.

Watch your score

According to the Consumer Financial Protection Bureau, there are four main ways to get a credit score. (See the government website below for additional links.)

1. Check your credit card or other loan statement. Many credit card companies and loan companies provide credit scores on monthly statements or by logging into your account.

2. Talk to a nonprofit advisor. Nonprofit credit counselors and HUD-licensed housing counselors can often provide you with a free credit report and score and help you review them. (I couldn’t find a New Mexico nonprofit credit counselor on the website, but I did find Housing Counselors for New Mexico.)

3. Use a credit score service. Many services and websites advertise a “free credit score”. Review them carefully, as you may be charged a fee for ongoing monitoring.

4. Buy sheet music. You can buy directly from credit reporting companies. Know what you are buying and acknowledge efforts to sell additional products or services.

Obtain and review your credit report:

You are entitled to a free copy of your credit report every 12 months from each of the three national credit reporting companies. It is important to review your credit reports, which you can do free of charge at www.AnnualCreditReport.com. If there are errors in your credit reports, they can unnecessarily lower your scores. You can submit information to correct errors.

Sources: www.nerdwallet.com, www.investopedia.com and www.consumerfinance.gov.

]]>
How does a joint credit card account affect my credit? https://howtooccupy.org/how-does-a-joint-credit-card-account-affect-my-credit/ Tue, 08 Feb 2022 13:55:34 +0000 https://howtooccupy.org/how-does-a-joint-credit-card-account-affect-my-credit/ There are many ways people share their financial lives, and it’s common to have a mortgage or car loan with a family member, partner, or spouse. You can also share a credit card account. While there’s no right or wrong answer to whether a joint credit card account is a good idea, there are pros […]]]>

There are many ways people share their financial lives, and it’s common to have a mortgage or car loan with a family member, partner, or spouse. You can also share a credit card account. While there’s no right or wrong answer to whether a joint credit card account is a good idea, there are pros and cons to consider.

What is the difference between a traditional and joint credit card account?

A joint credit card works like a traditional credit card, except the account is shared by two people instead of being held by one. Each account holder has a credit card, but the cards are linked to the same account.

The main difference with a joint credit card account is that the responsibilities and benefits are shared by both cardholders. Any card activity will affect both cardholders and you are responsible for paying the balance on the card even if you have not made any charges.

Advantages and disadvantages of a joint credit card account

If you’re considering opening a joint account, talk frankly with your co-applicant about the responsibilities that come with having a credit card in both of your names.

Advantages

  • An account holder with a lower credit score may have access to more favorable terms. If one of the cardholders has a patchy borrowing history or a lower credit rating, they can take advantage of the co-holder’s stronger credit history. Keep in mind, however, that lenders consider the financial profiles of both applicants when denying or approving a credit card application.
  • It can help account holders improve their credit. If you keep the account in good standing by making on-time monthly payments, a joint account can help improve the credit rating of a cardholder who could benefit from a positive credit history. It can also be a helpful way to establish credit for someone who needs it.
  • There are fewer bills to manage. A joint account can make it easier to manage bills each month because the account holders’ combined purchases appear on one statement. Plus, both cardholders can take advantage of features of a credit card, such as redeeming points for rewards, airline miles, or balance transfers.

The inconvenients

  • The credit history of both account holders is affected. If a cardholder goes on a spending spree or if payments are missed, the credit ratings of both account holders can potentially be affected. Joint Account cardholders are also responsible for paying the balance on the card, regardless of who incurred the charge.
  • Disputes over the card can lead to relationship issues. A shared account can lead to disagreements between cardholders over spending habits, debt repayment, and account management.
  • Relationship changes affect the account. If you divorced or experience some other type of separation, you will need to close the account, delete one of the parties, or otherwise figure out how to move forward with the account. It is also possible for one user to deliberately spend or skip payments to damage the other’s credit.

If you decide to get a joint credit card account, make sure you’re both on the same page about what it entails. It is important that you understand that you are both legally responsible for reimbursing any charges that one of you makes.

Speak openly and keep an eye on the account

When both parties are responsible for the money and have an open line of communication on financial matters, that’s a big plus. Agree to make payments on time, discuss major purchases ahead of time, and avoid going too close to your credit limit.

With credit cards, it is important to monitor card usage. If you share an account:

  • Regularly discuss household expenses and personal expenses with all cardholders.
  • Regularly check the status of an account by calling the credit card company or setting up access online.
  • Make sure the other account holder isn’t incurring excessive charges that you can’t reimburse.
  • Monitor your credit by checking your credit report to make sure your credit score is healthy. You can consult your credit report for free every 12 months on annualcreditreport.com.

As a security measure, some creditors will allow you to limit the fees of the person with whom you share an account.

]]>
5 Home Buying Lessons From Last Year’s Unsuccessful Buyers https://howtooccupy.org/5-home-buying-lessons-from-last-years-unsuccessful-buyers/ Sun, 06 Feb 2022 19:48:28 +0000 https://howtooccupy.org/5-home-buying-lessons-from-last-years-unsuccessful-buyers/ (NerdWallet) – Record housing stock, high prices and low mortgage rates have provided an interesting backdrop for the 2021 housing market. Millions have fought tooth and nail to close homes throughout the year, but millions more have failed in their attempts. The housing market in 2021 was booming, but that doesn’t mean buying a home […]]]>

(NerdWallet) – Record housing stock, high prices and low mortgage rates have provided an interesting backdrop for the 2021 housing market. Millions have fought tooth and nail to close homes throughout the year, but millions more have failed in their attempts.

The housing market in 2021 was booming, but that doesn’t mean buying a home was a breeze. In fact, 66% of Americans who started last year with purchase intentions were unsuccessful, according to NerdWallet’s 2022 Homebuyers Report. With 26 million people planning to buy homes this year, according to the survey, lessons learned from failed attempts in 2021 could hold some pointers for buyers this year.

More than a third (35%) of Americans who planned to buy a home in 2021 but didn’t said they postponed or canceled those plans due to the pandemic or related effects. Of course, individual shoppers can’t do much about the economic and public health impacts we’re all experiencing, but that doesn’t mean all hope is lost.

Studying the most common barriers to buying in 2021 can give future homeowners the edge they need to close a deal this year.

1. Competitive Bids Make Deals

Low inventory amid high demand creates a competitive market, and in that regard, 2022 will be similar to 2021. A quarter (25%) of Americans who had planned, but were unsuccessful, to buy a home in 2021 say they made an offer on at least one home, but were ultimately not contracted.

A competitive offer is not just the highest bid. Of course, money talks, and you’re more likely to succeed if you can outbid the competition. But there are other ways to make your offer stand out.

Make the transaction as easy as possible by keeping it simple and convenient for the seller. Demonstrate your ability to pay with a mortgage pre-approval, suggest a quick closing and let the seller choose the date, and offer to buy the home as-is after having it professionally inspected. Your real estate agent can help you write an offer that will move to the top of the pile, without putting you at undue risk.

2. The houses available may not be perfect

The greater the housing shortage, the more flexible potential buyers will have to be.

A quarter (25%) of unsuccessful buyers in 2021 say they delayed their plans because they couldn’t find a home that suited their needs. Chances are the line between wants and needs, for many in this group, is not clearly defined.

Before you start shopping, make a list of all the features you would like to have in a home. Then mark the ones that aren’t really needed. The more features you can compromise on, the more likely you are to end up with your own home. That doesn’t mean you have to be prepared to fit a family of five into two bedrooms, but maybe you can live without a two-car garage or a finished basement.

3. Buying in 2022 will still be difficult

Nearly a quarter (24%) of buyers who were unsuccessful last year say they have delayed their buying plans because they think it will be easier to buy in 2022. But the forces that made buying a home a challenge in 2021 will largely continue into 2022.

The rate of price growth may stabilize somewhat over the coming year, but prices are unlikely to reverse and fall dramatically. And the shortage of homes on the market is unlikely to see a drastic change either. According to the same survey, of potential home sellers who want to put their homes on the market this year, 89% say something is holding them back, including worries about finding or affording a new home. themselves.

If you’re hoping to buy this year, be prepared for a challenge. Realistic expectations can protect you from disappointment and help you make contingency plans when you find yourself fighting with other potential buyers.

4. Current house prices could blow budgets

It’s tempting to borrow more money or push yourself harder to get a contract. No. Nearly a quarter (24%) of successful buyers last year say they walked away from the market because they couldn’t afford the homes that were available.

Be thorough when setting your home buying budget, with the resolve to stick to it when the going gets tough. Stretching too far to buy a house to find yourself poor house can be a recipe for sleepless nights under your new roof. A home affordability calculator can help get you started in the right direction, taking into account all of your existing expenses as well as those that come with home ownership.

5. Borrowing for a house is not a safe thing

Qualifying for a mortgage usually requires adequate and consistent income, a manageable amount of existing debt, and a credit history that makes you a good risk to lenders. While 16% of unsuccessful homebuyers in 2021 said they were unable to qualify for a mortgage, it’s possible some of them didn’t actually apply and just assumed they would. refused.

Buying a home is most often a long-term goal, and it can take years for your income and credit to be in good enough shape to qualify for a mortgage. Aim for a credit history that showcases on-time payments, keeping debt low, and saving a down payment to make your mortgage application more attractive. Keep in mind that a healthy down payment will reduce the total cost of your home loan by saving you interest and private mortgage insurance (required for mortgages with less than 20% down payment).

Programs are also available for first buyers this can make it a little easier to qualify for a home loan.

]]>
This credit score is optimal for most Americans, says this CFP https://howtooccupy.org/this-credit-score-is-optimal-for-most-americans-says-this-cfp/ Thu, 03 Feb 2022 04:12:01 +0000 https://howtooccupy.org/this-credit-score-is-optimal-for-most-americans-says-this-cfp/ Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We may receive a commission when you click on links to our affiliate partners’ products. A credit score of 850 is a coveted achievement for many because it signifies a “perfect” borrower. But very few […]]]>

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We may receive a commission when you click on links to our affiliate partners’ products.

A credit score of 850 is a coveted achievement for many because it signifies a “perfect” borrower. But very few Americans are able to achieve a perfect credit score, and according to Faron Daugs, CFP, founder and CEO of Harrison Wallace Financial Group, it’s really not necessary.

In fact, Daugs told Select that a score of 850 is “almost impossible,” but reassures consumers that anyone can achieve a strong credit score to earn the same financial opportunities.

To select details what is the most optimal credit score to get the best financial products and interest rates available, how to get your credit score up to par, and how you can get started today.

Subscribe to the Select newsletter!

Our top picks delivered to your inbox. Shopping recommendations that help you improve your life, delivered weekly. register here.

Here is the most “optimal” credit score

All Americans are rated on their FICO credit score, which ranges from 300 to 850. The higher your score, the more likely you are to obtain favorable financing options for a home, car or credit card.

But Daugs is a firm believer that an 850 credit score is an unnecessary benchmark for Americans. Instead, he says that 760 is the most optimal credit score.

Daugs told Select, “The optimal score that will give you the highest credit limits and lowest interest rates is actually 760. Once you reach a score of 760 (according to FICO ), you will receive the same rates and limits as someone with an 800, 825 or even the ultimate 850.”

That’s a little contrary to popular belief, as a credit score of 760 is considered “very good,” according to Equifax according to their credit score ranges on their website. The ranges are:

By having at least a “very good” credit rating, you demonstrate to financial institutions that you pay your bills on time, that you maintain a low rate of credit utilization and that you have a good credit history. And in doing so, a credit score of 760 is just as valuable as a score of 800 or any higher when it comes to applying for financing options.

In short, anything over 760 is just icing on the cake.

How to Get That Credit Score

Earning a credit score of 760 doesn’t happen overnight. It takes persistent effort and strong personal finance skills to establish your credit history without any blemish, but it can be done.

In fact, the average credit score in America in 2020 was 710, according to Experian. So, wherever you are on the path to building (or rebuilding) credit, there are several things you can do to move your credit score in the right direction:

  • Pay off or refinance credit card debt: One of the largest parts of your credit score is made up of all debts owed (30%). So, if you have a lot of credit card debt, it will significantly increase your credit score. You may want to consider a balance transfer credit card to avoid compound interest charges. Or if you have multiple credit cards with balances, consider applying for a personal loan to consolidate your debt.
  • Dispute credit report errors: Millions of Americans have errors on their credit report that can negatively affect their overall score. Be sure to check your credit report and consider using a credit monitoring service to track any new credit applications or potential fraud.
  • Apply for higher credit limits: Each of your credit cards has a credit limit you can spend, and the amount of credit you use against that limit affects your overall credit score. This is called your credit utilization rate, and if you keep the amount of credit you use low relative to your credit limit, the more your credit score can rise. The best part is that you can request a higher line of credit from your card issuer and it won’t create a new request on your credit report.

For more tips, read our guide on how to build and get good credit. And consider a credit monitoring service for more information on your score:

Capital One CreditWise®

Information on CreditWise was independently collected by CNBC and was not reviewed or provided by the company prior to publication.

  • Cost

  • Credit bureaus monitored

  • Credit score model used

  • Dark web analysis

  • Identity insurance

IdentityForce® UltraSecure and UltraSecure+Credit

On the Identity Force secure site

  • Cost

    For a limited time, 40% off all plans – offer ends 6/12. UltraSecure+Credit Individual starts at $139.90/year and UltraSecure+Credit Family at $209/year. Click “Learn more” for more details.

  • Credit bureaus monitored

    Experian, Equifax and TransUnion

  • Credit score model used

  • Dark web analysis

  • Identity insurance

    Yes, $1 million for all plans

Conditions apply. To learn more about IdentityForce®, visit their website or call 855-979-1118.

At the end of the line

Your credit score is the foundation of many financial opportunities. Without a strong credit score, you risk being denied opportunities to obtain affordable financing for a major purchase, possibly being rejected for a new job, not being approved for housing options and other fundamental decisions.

However, if your credit score isn’t perfect, there’s concrete steps you can take today to improve it. And once your credit score is up to snuff, you can start making more important financial decisions to increase your net worth and prepare for retirement.

Check out Select’s in-depth coverage at personal finance, technology and tools, The well-being and more, and follow us on Facebook, instagram and Twitter to stay up to date.

Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.

]]>
Kreidler passes rule banning credit scoring for three years, proposes rule to increase transparency https://howtooccupy.org/kreidler-passes-rule-banning-credit-scoring-for-three-years-proposes-rule-to-increase-transparency/ Tue, 01 Feb 2022 18:05:08 +0000 https://howtooccupy.org/kreidler-passes-rule-banning-credit-scoring-for-three-years-proposes-rule-to-increase-transparency/ February 1, 2022 OLYMPIA, Wash. — Insurance Commissioner Mike Kreidler passed his rule banning insurers from using credit information to set auto, home and renter’s insurance for three years, beginning March 4. In addition, it proposes a new transparency rule requiring insurers to provide policyholders with a written explanation of any premium change. “I take […]]]>

February 1, 2022

OLYMPIA, Wash. — Insurance Commissioner Mike Kreidler passed his rule banning insurers from using credit information to set auto, home and renter’s insurance for three years, beginning March 4. In addition, it proposes a new transparency rule requiring insurers to provide policyholders with a written explanation of any premium change.

“I take this action against insurers’ use of credit scoring in response to the economic harm that many people have suffered during the COVID-19 pandemic – harm that has had a significant impact on people who are already financially vulnerable,” Kreidler said. “We know that now, more than ever, credit reports are unreliable. It’s unfair to base the amount someone pays for frequently required insurance on an unreliable and fluctuating factor like a credit score.”

The federal government recognized that many people are suffering financially and passed the CARES Act which allows lenders to provide relief to certain people in financial difficulty. However, the protections do not apply to everyone. And when the CARES Act ends, any default could then be reported or show up as a blackout period on someone’s credit report. This makes the credit history that insurers use unreliable and inaccurate. As it is unclear when the public health emergency will end, the rule requires insurers to temporarily remove the inaccurate credit score factor. The rule will be in effect for three years after federal or state emergency declarations end, whichever is later.

Kreidler’s rule is designed to be rate-neutral to insurers, meaning that any rate changes are spread across all policyholders. Some will see a one-time rate increase and others a rate decrease, depending on how much reliance their insurer has relied on the credit score. Based on consumer stories he heard during the public hearing on the rule, Kreidler asked insurers to provide additional information, including:

  • An illustration called a histogram that shows the range of premium changes due to removal of credit information as a rating factor. Some insurers have already provided these illustrations as part of their rate filings.
  • Copies of all communications used by insurers to describe the new credit rule to their policyholders.

He asked for copies of the communications because several investigations conducted by the ICO on behalf of consumers revealed that despite what their insurer had told them, the change in premium was not entirely due to the removal of the credit score. . In some of the responses they received, it was nearly impossible for the insured to determine what caused their premium to increase.

Only 12 companies representing 5.2% of the relevant market provided the information requested by Kreidler.

Based on the lack of transparency and answers, Kreidler is proposing a rule that requires insurers to provide policyholders with clear written explanations for any rate changes. This proposed rule will include stakeholder participation and a public hearing.

“If an insurer wants to change your coverage amount, you deserve to know why,” Kreidler said. “And it shouldn’t be difficult to understand the reasons that led to the change. If your insurance company wants your business, you deserve an honest and clear answer. We will help them give you one with this rule.

Below is a bar chart of the average premium change for the 12 companies that responded to Kreidler’s initial request for information on the impact of removing credit as a rating factor on their policyholders:















“I understand that some people will be upset that this rule is moving forward,” Kreidler said. “They think they deserve a discount because of their good credit rating, but I have to look at fairness for all consumers in our state. is not fair.

“During the three years that this rule is in effect, I intend to work with the Legislative Assembly, stakeholders and the insurance industry to see how we can permanently end the use of credit score in setting insurance premiums. It’s an outdated practice that relies on your creditworthiness instead of how you drive or treat your property. And if you think you’re more deserving of a good rate in because of your high credit scores what do you say to good drivers with low credit scores who pay an average of 80% more than you do We need to join other states that have done this and end this once and for all to this discriminatory practice.




]]>
Caught up in the big buy now, pay later https://howtooccupy.org/caught-up-in-the-big-buy-now-pay-later/ Mon, 31 Jan 2022 06:51:00 +0000 https://howtooccupy.org/caught-up-in-the-big-buy-now-pay-later/ So I made a big mistake. My father passed away last September and my sisters and I are in the process of selling his house. The realtor was pushing for ID, and I helpfully — and very stupidly — emailed him a photo of my driver’s license. This is where my real problems started. Armed […]]]>

So I made a big mistake. My father passed away last September and my sisters and I are in the process of selling his house. The realtor was pushing for ID, and I helpfully — and very stupidly — emailed him a photo of my driver’s license.

This is where my real problems started. Armed with a credit card and a driver’s license, the criminals set up a series of “Buy Now, Pay Later” accounts in my name.

And then I started getting emails from vendors buy now, pay later – ahem, Openpay and LatitudePay, to be specific.

LatitudePay notified me of a request to reset my password so I tried to speak to their call center to let them know there must be some fraudulent activity as I didn’t even have account with them, let alone a password.

I asked to be introduced to the fraud department, but in a decidedly Kafkaesque gesture, the person I was talking to refused to do so unless I provided more personal details.

After providing a few more details, I began to feel extremely uncomfortable giving personal information over the phone, given that I had been scammed so recently.

Humm was a frequent communicator, sending a series of cheery emails letting me know that I had been approved for $1,000 credit and my credit card details had changed.

I wisely ignored them all, assuming they were part of an elaborate phishing scam.

But my anxiety started to mount last week as messages from Openpay grew more insistent. It started with a payment reminder for a purchase at Officeworks on Wednesday. I received a notification that the $99.40 payment was missed.

Last Friday I called humm and spoke to an extremely efficient person at their call center who told me that humm had my (correct) driver’s license details. Oddly, the criminals had replaced my original credit card details with those of two other cards – presumably also stolen – and paid off the original loan which was just under $1,000 ahead of schedule.

(A banker later explained that criminals use this tactic to improve their credit history so they can apply for larger loans.)

The humm employee happily informed me that because there was no money to pay, my credit rating would not be affected.

But she advised me to report the fraud to the police – which I did immediately – and get a new driver’s license.

I also contacted Openpay to report the fraud, but unfortunately the call center person did not give me details of the amount borrowed from my account as the account was now locked.

I found myself at the Rose Bay police station with a very friendly young officer as we considered how best to comply with Openpay’s request.

Openpay referred the matter to the fraud department, and I received an email – “Unfortunately, you may have been the victim of fraud” – which told me what steps I needed to take “to resolve this issue and clear your credit report“.

And although the account is now locked, I received a second late payment notice from Openpay early Saturday morning, which urged me to “make your payment as soon as possible, otherwise you may be subject to a Debt recovery”.

So Saturday afternoon I found myself at the Rose Bay police station with a very friendly young officer as we considered how best to comply with Openpay’s request for a police report or statutory declaration , which had to be attested by a member of the police force.

The policeman was extremely sympathetic, but not optimistic about the chances of locating the criminals who, he explained, were probably based abroad.

I was in a slightly agitated state. Shortly before going to the police station, I received an email from LatitudePay – “an exciting way to shop, packed with benefits”.

So, with the cop looking over my shoulder, I emailed them back telling them I was a victim of identity theft and asking them to block my account.

On Monday, I was disturbed to find out that the scammers had been approved for a $4,000 loan from LatitudePay, which they hadn’t used, which is remarkable.

Unsurprisingly, the cell phone number the scammers gave LatitudePay was the same one provided to humm. (Not mine, needless to say.)

LatitudePay’s fraud department was also very helpful in advising me to contact a credit bureau and get a copy of my credit file, and alerting them that I had been the victim of fraud.

There was also a major breakthrough on Monday when Openpay’s customer support team called to discuss my case, and I found out that thankfully Openpay had been very careful and only moved forward to criminals than the grand total of $497.

Openpay’s advice mirrored LatitudePay’s: get a new driver’s license, close my hotmail account, and most importantly, I should contact a credit bureau, ask them for my credit report, and ask them to block any further requests for credit.

Because, as the Openpay representative helpfully pointed out, it is by no means certain that the criminals limited themselves to requesting loans from humm, LatitudePay and Openpay.

I may have other loans outstanding with other operators buy now, pay later – or even other creditors – who are less communicative than this trio. If other creditors have filed an inquiry into my credit rating, that’s an indication that I’m even more deeply entangled in this dark financial nightmare.

Of course, one of the most disheartening aspects of this whole experience has been the abysmal asymmetry between how easily one can secure a purchase now, pay off a loan later, and the arduous and time-consuming process of sorting out their net.

The “frictionless” process to set up a buy it now, pay later only requires someone to provide a credit card number and some form of identification, such as a driver’s license, online. It’s no surprise, then, that businesses, consumers and banks nationwide – and buy now, pay later the operators themselves – lose billions of dollars each year to financial fraud.

As Dion Appel, Openpay’s Managing Director for Australia and New Zealand, put it The Australian Financial Review“Online identity verification is not unique to buy now, pay later and has been adopted by most industries that require some form of identification, with the practice now common in financial services, telecommunications and beyond”.

“Openpay, like other buy-it-now, pay-later providers, is not alone in being targets of fraud and has complex fraud detection and transaction monitoring processes in place.”

Of course, there are other options for fraud. A fortnight ago I received an email from Coinbase – the online platform for buying and selling cryptocurrency – informing me of their planned security upgrade and asking me to update the system. And just this morning, Coinbase support contacted me about another account I created “with the same information as our rules (sic)”.

For now, I’m guessing this is a phishing exercise, given that I’m even less likely to go after cryptocurrency than buy now, pay later. But I’ve made that mistake before.

]]>