Discover 5 Things To Know Before Hiring A Credit Repair Service

By David Wada

1) The latest figures show that an average American has a credit score of 677. The difference on monthly or yearly payments with a credit score of 677 and 720, for instance, is an average savings of $421 per month or $5,052 per year (i.e. house payments, car payments, credit cards, etc.).

2) A lot of people ask whether credit repair really works. The simple answer to that is, "Yes, absolutely." Millions of items have been removed from credit reports, and tens of thousands get deleted every single day (i.e. late payments, collections, bankruptcies, and foreclosures get deleted). A study released by the U.S. Public Interest Research Group in June 2004 found that 79% of the consumer credit reports surveyed contained some kind of error or mistake.

3) The Fair Credit Reporting Act guarantees the credit repair process to you. Although there are many credit repair companies out there, be cautious, however, to avoid being scammed.

4) Also, the credit repair organizations must give you a copy of the "Consumer Credit File Rights Under State and Federal Law" before you sign a contract. Unless they give you a written contract that spells out your rights and obligations, assume you are being scammed.

5) A credit repair company cannot do the following until you give your signature:

* Make false claims about their services

* Take your money unless they have finished the promised services (Not half way; but completely)

* Perform any services until they have your signature on a written contract and have completed a three-day waiting period

Know that you have the freedom to cancel the contract with no fuss, no hassle, and no cancellation fees during this time.

Before you sign a contract, be sure it specifies:

* Payment terms for services and total cost

* The services the company will perform with colorful details and easy-to-understand description

* How long it will take to achieve the result

* 100% guarantees the company offers

* The company's name and business address

About the Author:

About The Author: David Wada, who has been repairing credit in Northern California for thirty years, has written a very practical guide to clarify Credit Repair Companies. For a limited period, you can access a free copy by going to his Credit Repair Companies

Uncontrollable Spending Of Credit Card

By Mike Carbeck

Misusing credit cards is the main reason people run into uncontrollable spending and find themselves facing large payments combined with interest and penalties. Because it is so easy to use a credit card many people do not realize that every little penny adds up.

It is very easy to pull out a credit card and spend, spend, spend. For people who have a credit card with no preset spending limit, there is no amount of money limiting to what they can charge up on their credit cards. With no limit set, people spend money dangerously and do this without taking the time to think about the bigger picture, what happens down the road can be an ugly outcome.

Not only do you have to pay the monthly minimum, you are also charged with what can be a very high interest rate. If you find yourself in the horrible situation of out-of-control credit debt, there are several agencies that can help you out. These agencies will assist you in getting your spending under control and may even help you get a consolidation loan to pay off business or personal debts.

You apply for a consolidation loan in the same way as you do for credit cards, however this is where the similarities end. These loans will roll all of your credit card debt into one lump loan and will eliminate the individual interest rates that some credit card companies charge.

A consolidation loan allows you to make one lump sum payment per month, to one company. You take control over your credit card debt, lower your interest payments per month and can possibly preserve your credit rating. A consolidation loan can take the place of making many payments, to many companies, and by only paying the minimum monthly payment on your credit cards, you will continue being eaten alive by debt. These loans are a step in the right direction for some people.

It does not matter if you have perfect credit, the credit agency you choose can put you in touch with lenders who will still enable you to secure a loan. Your agency will negotiate with your creditors to get lower interest rates and may even be able to get them to waive possible penalties, thus saving you even more money.

There are two types of consolidation loans for consumers in trouble, one is a secured and the other is an unsecured loan. A secured loan requires collateral be guaranteed before this loan is approved. An unsecured loan requires no collateral before it can be approved.

These are just two of the many options available to you when facing mounting credit card debt and the results of reckless spending. The end result is that as a credit card holder it is up to you to make sound financial decisions, and if you find yourself knee deep in debt there are alternatives out there to help you get rid of the debt. This will allow you to rebuild your good credit and get out of the bottomless pit of credit card debt.

About the Author:

Mike Carbeck frequently contributes to http://www.debtmastering.com. For more information about get rid of credit card debt.

UK Bad Credit Payday Advance

By Shelly Ganes

This article looks at the way banks exploit customers with NSF and overdraft fees. It contrasts this with the other option known as payday or cash advances and proposes that these are in fact cheaper than bank fees. It goes on to show how banks lobby aggressively against the payday industry fearing cuts in there fees. The findings are based on a US study by the federal government and is freely down loadable.

This is an independent agency part of the federal government - created in 1933, just when thousands of banks failed. The 1920s and early 1930s saw thousands of banks fail. The FDIC is managed by a five-person Board of Directors, all of whom are appointed by the President and confirmed by the Senate, with no more than three being from the same political party.

This study of overdraft programs began in 2006. It was initially a response to the banks growth of automated overdraft programs. This is a system where the bank honors customers obligations using computer rules to determine non-sufficient qualification for overdraft coverage. Data and information were gathered through a survey of a sample of institutions representing 1,171 FDIC-supervised banks, and a separate data request of customer account and transaction-level data from a smaller set of 39 institutions.

FDIC publishes the results of a 2 year study on the banking systems use of overdraft programs. The study found that a typical NSF check can result in overdraft fees and interest in excess of 3,500 percent APR. In addition, the study found that customers in low-income areas (median annual income of less than $30,000) were nearly twice as likely to incur these charges.

This study confirms the argument made by the payday industry. That is short term payday loans are much less expensive than using a bank and incurring bank overdraft fees. The other major difference is than banks are automatically enrolling customers in programs that carry APRs and other fees that are in fact far more expensive than a payday loan. Namely 75% of banks did this.

The study concluded that a typical customer would incur fees of $27- for each $20 overdraft over a 2 week period. A $60- ATM overdraft in 2 weeks would incur an APR of 1,067 percent. A customer repaying a $60 ATM overdraft in two weeks would incur an APR of 1,173 percent and a customer repaying a $66 check overdraft in two weeks would incur an APR of 1,067 percent. Surprisingly, the study also concluded that the faster a customer repays an overdraft, the higher the resultant APR.

Consumer advocacy groups like the Center for Responsible Lending (CRL) have lobbied to ban payday lending, leaving consumers with no option other than to pay overdraft fees to banks and credit unions. CRL have led a charge to pass a law banning payday lending in Ohio. In 2006, Ken Compton, CEO of Advance America, said, "Contrary to the CRL's spin, responsible uses of the payday product provides consumers firm footing to overcome unexpected financial circumstances,".

Some key findings;

Over 90% of banks completed overdraft fees without informing the customer.Very few banks (less than 8%) inform customers that they are about to incur insufficient funds. There is little opportunity to cancel the transaction so avoiding the fee.

Consumer complaints about automated overdraft programs were received by 12.5 percent of banks that operated these programs.

About nine percent of bank customers have 10 or more NSF transactions per year. 4.9 percent had 20 or more NSF transactions. Customer accounts with 20 or more NSF transactions were charged $1,610 per year in NSF fees on average.

About the Author:

Marsha Smythe is fascinated by the concept of APR and how banks can get away with charging such high amounts. He makes available on his blog downloads from the Federal Deposit Insurance Corporation (FDIC). These are a must read for anyone contemplating overdraft versus payday loans. Although US bank orientated the same rules apply to both UK Payday Now and Canada payday cash.

Using a Power of Attorney for Texas Reverse Mortgage - Not!

By Krevi Vanrock

We all know that everyone hears things differently. That being said, one person may understand a concept that another does not.

Youre probably thinking, Wow! Glad I made it to this article. This character is the master of obvious statements!

A Power of Attorney (in real estate) is not an easy thing. The typical power of attorney is a general power of attorney. What happens in regards to real estate is the escrow company alters the POA to be specific to the real estate in the transaction.

Typically, the escrow company requirements are just an inconvenience. They dont normally stop the deal.

A group of three (husband, wife and mom) came to me last month wanting a reverse mortgage outside of Houston. One of the borrowers (mom) was not mentally capable to sign. That being the case her son had power of attorney.

On the title are the husband and wife, and of course, mom. The reason for the reverse mortgage was to fix the homes foundation, and to bring in a part time nurse for mom.

The borrowers had a legal power of attorney, and it seemed like a simple transaction. Nope. Apparently the TX Dept of Insurance put the Kibosh on using POAs for mortgages purposes.

What is the reasoning behind power of attorney, anyway? It is a legally-binding document, with the intention of having certain control in legal issues, just as the persons in the example above are attempting.

In Texas, the example above doesnt make sense to insurance companies who issue title insurance. Sounds strange, but its true.

Texas Department of Insurance hasnt given me any explanation, but Im smarter than the average bear. The problem is legal action amid families and the insurance companies; the guys with money are tired of it.

Reality is, even a conservatorship as well as a power of attorney, doesnt seem to help.

This issue creates a grim problem for my current and future customers as there does not seem to be a viable answer in the foreseeable future. Wish me luck.

About the Author:

Get loads of info regarding the texas reverse mortgage by clicking here. Also, you can have your answers about the Texas reverse mortgage here.

Credit Card Offers

By Darren Cason

It is very important to compare credit card offers. The first thing you need to do is look at the fine print in the Terms and Conditions, where you can learn more about the card offers. Although some providers advertise cards with no annual fees or zero percent APR, the fine print can often tell a different story.

Another area to look at is the credit card company's policy on fraud liability. The fine print can often lay out stipulations which could mean that you are responsible for some of the charges if your card is used for fraudulent uses. Also consider the APR, since some ads claim to offer zero percent during an introductory period, but the fine print sets out limits on the use of the card in order to qualify for the zero interest period.

Cash advances are another thing to consider before applying for a card. Many cards charge up to 31.99 percent APR for cash advances, which is a very high interest rate. In fact, this is the highest allowed by law. Some card providers even go beyond this rate, believing that they will not be caught.

Be careful of catchy ads, because they can lure you into a card that may not be the best deal for you. Carefully investigate any credit card company before you apply for their card, to make sure that the card is legitimate. This will save you many hassles in dealing with the company later. There are many scam companies out there, especially those that offer credit cards regardless of your credit history if you give them a small deposit. These types of companies are illegal, because credit checks are mandated by law. Be sure you know how to spot a legitimate offer before you begin applying or redeeming chase card or other credit cards..

Snail mail credit card ads are often from illegitimate companies, and you should always toss these ads. Even the ones from legitimate credit card companies like MasterCard, Visa, or American Express should be thrown away. You should do your own research, rather than applying for cards based on heir ads. All cards offer unbelievably great deals according to their ads, but these offers are often negated by the fine print in their terms and conditions.

Finally, make sure you know exactly why you need a credit card. Determining whether you will need cash advances and whether you can and will pay your balance in full every month can impact which card is the best choice for you. There are many options, including those with rewards points or cash back programs. What you want from a credit card will change which card you should choose.

Lastly, use your card wisely. It can be great for paying bills, purchasing necessities when cash is low, or for use during emergencies. However, be sure to use it responsibly.

About the Author:

Knowledge you can use for everyday living on the subject of redeem chase flexible rewards points. You're only a click away - http://www.debtjerk.com/chase-flexible-rewards-card-excellent-for-travelers-or-point-collectors.html.

How to Up Your Odds of Getting a Mortgage

By Fred Brod

Maybe you have found that house that you have been dreaming of and are now talking to banks about giving you a mortgage. If your credit isn't that great, you may be scared that you won't get approved. You want to increase your odds of getting a mortgage, because without one there is no way that you can afford a house. How are you supposed to up your odds of getting a mortgage exactly?

Do your research. The very first thing you want to do is to figure out what your financial history is. If you don't know it, you are going to want to get your credit score. This score is going to tell you whether your credit is good or not and is the number that banks look at to determine if you are a high risk or a low risk. If your score is not that great, you may find that it is difficult to find a bank that is willing to lend you the money that you need. On the other hand if your score is great, you will find that banks are fighting for your business and may even offer you special deals to take out your mortgage with them.

Make a Budget. You are going to want to go to the banks with information on how much you are paying for housing now and how much you would be paying when you owned your dream house with a mortgage. If you can show that having a mortgage is going to save you money on your housing budget, you are more likely to get accepted.

Have a Down Payment. A lot of first time buyers don't have the twenty percent required for a down payment on their mortgage. This is going to be a problem if you have bad credit because a lot of banks aren't going to want to take the risk. By saving up and having enough of a down payment, you are going to increase your chances of approval.

Get someone to back you. If your credit is questionable, a bank may ask you to find a cosigner who will put their mortgage on the line if you don't pay on time. This will definitely help your chances of approval. But, a lot of people will probably not want to risk their houses on your bad credit.

Find out about the real estate market. When the market is hot, you are going to have a better chance of getting a good mortgage. When the market is cooling, banks are going to be more reluctant to loan money because the price of the property may go down.

Find out about your neighborhood. Some bank officials are going to ask you about how much houses in the neighborhood sold for in the past. When they find out that you know how much your future neighbor's house sold for three years ago, they are going to be impressed and give you the loan

With the economy not being so hot, it is getting more and more difficult to get a mortgage. Following these six tips is going to drastically improve your shot at a mortgage.

About the Author:

Want To Get A Mortgage Loan? Phone Brendan at 01 4790579 Now

Do Reverse Mortgages & Equity Growth Go Hand in Hand?

By Mortrev Vanrock

The reverse mortgage can be a fabulous tool to solve a financial issue and not be obligated monthly to repay the lender. The borrower simply needs to understand that it is a negative equity mortgage.

The lender must have a financial gain somewhere along the line. This is done at the end of the loan, with the interest accruing on the principal amount loaned to the borrower. At this time the lender can get back the investment and make a profit.

As a potential borrower one thing to be naturally concerned about is the interest accruing to such an extent that all of the equity in the home vanishes.

Many things are going on in this process, and borrowers should take heed of this. Some factors consume equity while others grow equity.

Accruing interest against homes equity can be severe, however, home appreciation has tendency to slow this progression and even reverse it.

Usually, normal appreciation will add to equity in a home, even with the reverse mortgage interest accumulating against it.

Borrowers are eligible for a specific monetary amount based on value, age and interest rates. Most dont use this entire amount. The reason is by not pulling it out of the line of credit it doesnt amass interest against the equity.

As an example, we will have the borrower decide to use all of the money right away. His house is worth $200,000, and the borrower qualifies for $130,000.

The one hundred and thirty thousand dollars will immediately begin to build interest. In this example, you can see how that interest will compound rapidly, taking away from the equity.

With a 6.125% fixed rate (very close to the current rate) accruing interest against the home, and 4% national average house appreciation, it takes over twenty years for the loan to accrue enough interest to eat away at all of the homes equity.

In the same example, lets say the borrower only used $100,000 immediately. In twenty years there would still be over $100,000 in equity. In the latter example the borrower actually had a net gain.

In conclusion, most people dont usually take into account how useful home appreciation can be, especially when regarding the negative side of the reverse mortgage.

About the Author:

Thinking about a HECM or boning up on the California reverse mortgageget a good guide at former link or this link which leads to an excellent informational source for the California reverse mortgage.

Can You Get a Mortgage Loan with Bad Credit?

By Mark Dawson

Even though your credit scoring might be a little high, you could still qualify for a mortgage. Not easy, but not impossible either.

There are a lot of different things that a loan advisor will look at when deciding whether or not to accept or reject your loan and your credit score is one of those things. If you know that your credit score is going to be a problem, you should start taking steps to repair it right away. If you want to improve your credit, limit the number of credit cards that you have, the amount of debt that you carry, the number of credit checks that are done on you and the number of late payments that are made. A good credit score is going to get you a better interest rate, but just because your credit is bad, doesn't mean that you won't get a mortgage.

If there is no way of improving your credit, then you will have to consider other options to get a mortgage, as you probably won't be granted one. This is thanks to the downturn of the economy, which makes it difficult to get a mortgage approved. You could ask someone to cosign the mortgage papers; however this is high risk to the cosigner, as they would be putting their credit on the line for you.

If your credit has been improving for the last six months because you have been doing everything right (paying your bills on time, reducing your debt and so on) you might want to see whether you can get a mortgage now. Now is the time to go from bank to bank and see which one is going to offer you the best deal possible. You still might not be able to get the lowest interest mortgage, but if you continue to improve your credit score you can always remortgage in a couple of years to a better rate.

You're probably going to be left with paying a higher interest if you have a poor credit rating. The mortgage company may well insist that you get insurance, if you don't have funds to cover the down payment. This could increase the cost considerably, so you need to ensure you budget for everything and know exactly how much you will be paying each month. If you default on a mortgage, it is very unlikely that you would ever get another mortgage in the future.

Due to the current financial climate, it is very unlikely you will be considered for a mortgage if you have defaulted or filed for bankruptcy in past. All you can do is shop around, but you may find that interest costs are set so high, in order for a bank to trust you that it simply may not be worth it.

If you want to be smart and save a lot of money in higher mortgage rates, keep your credit score good.

About the Author:

Mark Dawson writes for the the Loan Arrangers where you can compare loans and apply online for tenant loans, and bad credit loans.