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Your Free Credit Score: New Options With Loan Denial

If you have been rejected for a loan, credit card, or mortgage, it is usually because your credit score has been deliberately stagnant probably due to missed payments. Rejection is somewhat hard to accept, especially if the reason for the refusal is not clear.

Lenders make use of credit scores to distinguish who will be granted a loan. They also determine the rate of interest and credit limits based on credit scores. Creditors will require copies of your credit report whenever you apply for a loan. These requests accumulate points which are added to your credit score and remain on your report for a span of 3 years.  The points  will then be deducted from your score, if you obtain points that are more significantly more than your credit.  One way to manage and tally these requests is to obtain a copy of your  free credit report. These are the same reports as the ones viewed by creditors when you apply for a loan or a credit card.

At the event of loan rejection, the lender will be required to disclose the reason for rebuff, which will clue you into your credit and any fixes needed. President Obama recently signed a financial reform bill mandating lenders to provide a credit score copies to the consumer.  They will send the copy that they used to come up with the decision of refusal for the loan. Lenders will also need to provide a free credit report if a loan with a greater interest is being given over the rate given to borrowers with a good credit record. The law guarantees that you’ll get the precise score that was used as a basis for the loan acceptance.

Lenders and credit bureaus utilize different scores to assess borrowers’ credit standings. That simply means that mandating free credit scores for everybody might be a problem. So for your convenience, free credit scores are also made readily available by means of subscription to one of the several credit report monitoring services provided by the credit bureaus themselves and other reliable sources.  The federal government demands consumer reporting companies must supply a free credit score copy per client’s request once every year.

The best way to avoid any problems is to determine if there are any doubtful situations before applying for the loan or credit card. Acquiring a free credit score on the internet will help you check out all aspects of your credit report.  It will help you gain a better understanding of what would need to be done to fix any damages.  It saves you valuable points that add up every time you are rejected for a loan and will eventually lead to greater results of loan approval with smaller interest rates.

How to Prevent Identity Theft

There is only one word that describes identity theft, FRAUD. When someone steals your identity they not only steal your name but also control your credit history, credit score and have access to all of your assets. While you may  have spent years carefully managing your finances to give you a better chance to buy a house and lower interest rates for a car loans, the Identity theft fraudsters come through, ransack your accounts, and benefit from your hard work. This can happen in a blink of an eye and will leave you picking up all the pieces before you even have a chance to realize what happened.

Sounds frightening and difficult, right? That is why It is a good idea to have an identity theft protection service in place before you need it. This precaution will stop anyone other than you from accessing your information for illegal use.

How can you tell someone has stolen your identity? There are signs that the cautious person can catch early to avoid disaster. Check your statements for any charges that you don’t remember. Fraudulent charges may start small to avoid alarming anyone initially. Take notice of when you receive your bank, credit, and mortgage statements whether by email or postal mail. The thief could change your address without your knowledge to remain undetected. It is important to notice any changes like missing bills.  The best way to prevent identity theft is to monitor your credit report and enroll in an identity theft protection service. These companies will monitor your credit daily and prevent any unauthorized use of your name and social security number.

There are many levels of identity theft that occur every day, and each type has a specific solution. Therefore, you would need to identify the type of theft that has happened to you. The simplest form of identity theft is credit card fraud, which means someone has stolen your credit card number and used it. Usually, the credit card companies will reverse the charges and start their own investigation. Once the charges have been reversed, the next step is to call every one of your credit card companies and ask for a new account number and card. From the information of one credit card, the thief could now have your name, address, and social security number. This is all they need to steal your identity! Your next step should be to obtain a credit report and inspect it for any other fraudulent charges, loans, and accounts. So even smallest form of  identity theft is be difficult and time consuming.

There are many ways to obtain identity theft protection online. Once you contact the reporting agencies, tell them you have been the victim of identity theft and fraud, and they should give you a copy of your credit report. Everyone is entitled to one free credit report each year. You can review identity theft protection products to see their free trial offers for credit monitoring and identity theft protection services. You can also check comparison sites to view identity theft protection offers side-by-side to find the best one for your needs.

Savings Mistakes You Can Learn From

It is cheaper to learn from other people’s mistakes than to learn from trial-and-error. That’s why it is important to find out the experiences of people who have “been there, done that” especially with regards to financial management. Some wish they can go back to their 20’s to undo the mistakes of the past. Meanwhile, there are others who regret the financial decisions they made earlier.

The experiences of different individuals in debt and personal finance will definitely vary greatly. For example, some people wish they haven’t spent that much while others might regret saving too much and not spending enough on themselves while they were younger. This article won’t provide concrete steps. Rather, we aim to help you see the alternatives:

Saving 10 Percent of Your Income – instead of spending all your salary as soon as you receive it, save 7 to 10 percent. Many people regret their free spending ways. For instances, by saving a little bit of money every month, you may be able to buy a nice house outright for your retirement in 30 years.

Waiting Too Long – when it comes to money, not doing anything is a decision to do something. By postponing the decision to start an IRA in your early 20’s, for example, you will have less investment for retirement and you may also need debt help. The same is true in other things, if you can afford to buy a house today, it might be a good idea to buy because inflation might drive it up over the short or long term.

Making Transfers Inconvenient
– some people do get the idea. Many couples today actually have a separate “emergency” account that receives automatic savings. But that money is a temptation and you may need debt help because of this. By making it hard to transfer money to your checking account, you are likely to spend less as well. Also, make that “emergency” money almost impossible to reach for impulse buys.

These are just some of the actions you can take starting today. There are many financial decisions you that need to be made every single day. Plan and choose your next move carefully and get debt help as soon as you need it.

The New Personal Finance Culture in America

Recently, there has been a major development that changed the way Americans looked at money management. As the US economy struggled to recovery, ordinary citizens have had to cope with the “new normal”. No longer are credit, loans, and credit cards offers as abundant as they used to be. People are being forced to adapt to the new situation characterized by the following:

Long Term Unemployment

In the previous article, we talked about long term unemployment. Well, this phenomenon is still ever present with the jobless rate hovering at about 10 percent. Figures reveal that there is minimal hiring in the private sector. Most of the recent hiring we saw came from the government. The Obama administration said that the problem is cyclical. But economists expect that while unemployment will drop to 8.7% towards the end of next year and that it won’t be an easy target. Credit card holders need to be aware.

Renting Trumps Buying

Dreams of home ownership are being set aside for now. Instead, people are renting to keep a roof over their heads instead of buying. Between the year 2006 and 2009, the S&P/Case-Shiller Home Price Index showed that property value dropped by over 32 percent. This might encourage some people to buy homes at this point because of lower prices.

For the majority though, the property market would never be the same. And buying real estate is no longer perceived as a good investment. In this regard, renting instead of owning will be the preferred alternative for many.

Saving Against Spending

Americans have high credit card balances. This is stabilizing right now; in fact, credit cards’ balances fell by 6 percent or around $4.5 billion last June. At the same time, average savings rose to 6.4 percent (after-tax income). The rate is thrice higher compared to 2007. Over the short term, saving isn’t good for the economy. But over the long term, more responsible consumers mean better economic fundamentals.

Another trend is higher taxes for the country’s top earners. While this may not affect a significant number of people, some experts say that this can slow down an already-weak economy. Whatever the case, it seems that the “new normal” outlined above are here to stay.

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