The end of this week will represent a time in most households when the slate will be wiped clean and our annual New Year’s resolutions will be put into motion – whatever they may be; from losing weight to finally getting our finances under control. New starts are never easy but the New Year can mark a time during which we can take advantage of the spirit of renewal in the air, using it as traction to hit the ground running.
Finances – like most New Year’s resolutions – are not something that is easy to face. When times are tough most of us are more apt to stick our heads in the sand, determined to pay attention at a later date when things are better. The problem is, however, that if we continue to ignore the situation it will only get worse, snowballing into a financial crisis that will be difficult from which to extricate ourselves.
Turning over a new financial leaf requires commitment on our parts but it also requires some logical steps including making sure we know what it is that our credit report is telling the world about our financial state. We should all have a clear idea of the nature of our credit report and the best way to go about that is to take the time to order free credit reports from each of the three credit bureaus – Experian, Equifax, and TransUnion.
The Internet has made the ordering of free credit reports easier than ever; one trip to a central website – www.annualcreditreport.com allows consumers to order a free credit report from each of the credit bureaus or all at the same time – something that we are entitled to receive once within every twelve month period; a way to get a handle on our current financial situation before we can move on to a brighter future.
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The holiday season brings out the best and sometimes the worst in us; especially when it comes to our finances. Faced with an endless list of presents to purchase and without the cash on hand to get it done, sometimes we are forced to turn to credit cards in our pursuit of getting the holidays behind us with as little financial ramifications as possible. This is not to say that we don’t enjoy ourselves; often the fun of giving gifts and the spirit of the season is what so greatly fuels our spiral into financial problems. But when the holidays are over, as they are now drawing to a close, we are faced with the reality of our situation and what we have to do in order to extricate ourselves with as little damage as we can.
Credit cards are never a good thing unless you pay them off on a monthly basis. When they are used as a substitute for cash, as they so often are, the possibility of financial disaster follows. Those who are looking to make headway on their credit card debt and repair their credit report need to start by making sure they are paying as little as possible on a monthly basis. To do this it is necessary to compare credit cards to ensure that you are getting the best deal possible in terms of finance charges, interest rate, and other fees. If, after you compare credit cards, you find a card that offers a much lower rate than you are currently paying then look to consolidate your current credit card debt onto this card so that you can save yourself money while paying aggressively down your debt.
Even better, when you compare credit cards, look for those cards that offer 0% interest on the first six months or year of service – an easy way to make some headway on paying down debt.
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The holidays have certainly been crazy thus far with most of us shopping less in deference to the economy. But every holiday season leaves us vulnerable to changes on our credit report – be it the spending that we do so freely and the debt that we subsequently accrue, or be it the possibility of being in close proximity to those who are able to adeptly steal personal information and use it to their own advantage.
Our credit report is a precious commodity, especially in this day and age when the economic world is so tenuous and credit lines are so difficult to procure. Protecting our credit score should be paramount in our lives and the only way we can stay abreast of any possible changes is through a free credit report ordered from the credit bureaus that accumulate our financial information.
Free credit reports spaced throughout the year give us a bird’s eye view into our credit history so that we are able to notice any changes that occur immediately; giving us the opportunity to rectify any errors or address any occurrences that could signal possible criminal behavior. Those who are financially bereft by identity thieves often find themselves so deeply in their position because they failed to notice right away that something was amiss. With free credit reports, however, consumers know what is on their credit report and can spot any changes right away – giving them the best possible head start in recognizing problems.
Free credit reports are easy to get; simply going online and ordering them takes a matter of moments and credit reports can be requested from any or all of the three credit bureaus. Don’t take for granted that the information is the same on each; having a free credit report from each of the bureaus is the best possible offense in protecting your credit.
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With the holidays almost upon us it is without question that many of us went over the top in terms of spending this year, even with the economy the way that it is at the current moment. There’s something about the holiday season that brings out the best and the worst of us; the worst in terms of finances as we buy things we can’t afford and push off the consequences. Unfortunately the consequences don’t take long to arrive in the form of bills that start filling our mailboxes come January.
Faced with the ramifications of what we have done, we are often wondering what way to turn in terms of getting it under control. Right now, with lending being what it is, there are few among us who can qualify for personal loans that will cover all of our debt. But what many people will do in terms of making things a bit easier, freeing cash flow, and lowering interest rates is to consolidate all credit card debt onto one card. This can be an effective way to limit spending and begin making headway on paying off credit card debt entirely, but it is important to choose the right card. To this end, it is important to compare credit cards in order to get the best rates available and have the opportunity to make the most progress through a consolidation.
Even though the economy is struggling most of are still receiving credit card offers; this is the place to start when you compare credit cards. Look at all of the offers that you receive and make a determination based on interest rates charged and other introductory offers. Often credit cards will use incentives to entice new card holders including a time period in which interest is lowered or even eliminated; making such a card a perfect opportunity to gain traction with a debt consolidation.
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In the last post we talked about the struggling real estate market and how both sides of a real estate transaction – the buyers and the sellers – are feeling the impact of the economy. Sellers are facing stiff competition in which there are more houses than there are buyers. Buyers are facing tough lending that is making the prospect of getting a mortgage loan bleak for many who were able to be approved with no problems even just a year ago.
Most of us – in our own way – are sort of lying low right now and waiting out the economy to see what will happen next and how we should proceed accordingly. For those who are considering a real estate transaction, there are things that can be accomplished while they wait. As we discussed, sellers can use this time to make sure their home is in the most optimal condition possible so that there are no hurdles a potential buyer must cross on their way to loving your home. For buyers, financial preparation is imperative in ensuring that there are no roadblocks to getting a mortgage loan. And it starts with our credit report.
Our credit report tells potential lenders all they need to know about our creditworthiness; and things that were looked over even a year ago are now cause enough to deny an applicant a loan. Potential buyers should therefore immediately order a free credit report from each of the three credit bureaus – something that can easily be done online.
With free credit reports in hand, consumers have the ability to identify on their own the problems that may be presented during a loan application process and to address those issues ahead of time. Having done due diligence in terms of their credit report, buyers will be ready to start or continue their home search with confidence.
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There is no doubt that the real estate market is a tricky place right now. Sellers are up against fierce competition and are often forced to take far less than market value on their home in order to sell it. The market is flooded with homes that are not being purchased – and this typically slow time of year does not help matters. Buyers, while you would think they would be in the better position with the pick of the crop at their feet and the ability to get way more house for their money, are still facing tough times because of current lending practices. So while a buyer may find the home of their dreams – and at a substantial reduction in price – they also very well face the prospect of being denied a mortgage because of stricter lending guidelines at present. So where does this leave those who are looking to buy a sell or home? At the present time most are simply waiting out the economy and the time of year – hoping to have a better shot at reaching their goals in the spring.
This does not mean, however, that either buyers or sellers should sit back on their heels and wait when preparation is their best offense at the moment. Sellers should make sure that their home is in the best shape possible so that it is ready to be seen and sold without issue when the market picks up and gets going again. Buyers, on the other hand, should be armed financially if they are to make the mortgage process a smooth one and allow them to not miss the opportunity to get a great house at a great price. Our credit report is what will ultimately decide if we are extended a mortgage loan and one of the ways in which we can go about getting prepared for a mortgage application is by ordering free credit reports. More in the next post…
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Recently I began the process of renovating my home. I had tried to actually sell it first but the economy was not working in my favor – or anyone else’s for that matter – and we had to pull it off the market lest we take a beating on the sale price. Since then we have decided to stay put for awhile and in so doing made a commitment to make the house as comfortable as possible for our family of four that essentially outgrew it two years ago. That being said, we are making our way towards making every area in our home useable and comfortable space which is helping it feel much bigger.
Part of what we have done in making over our home is to purchase furniture – large ticket items by any measure but especially now. We had most of the cash that we needed to make the purchases we wanted but I was also interested in some of the financing deals that some of the furniture stores were offering including no payments and zero percent interest for a period of time. This would allow us to get what we needed without completely depleting our cash stores.
However, when we went to apply for the financing we were promptly turned down – quite honestly one of the most humiliating experiences of my adult life. How could this be? Our credit scores had always been admirable! We immediately went home and ordered copies of our free credit reports from each of the credit bureaus. And what we discovered was a mistake of huge proportions – a creditor long since discarded reporting late payments for the last several months. It was a nightmare. But after many hours spent on the phone and countless letters we were able to remove the inaccurate information and clean up our credit report. Something that we could have done months prior had we been aware of the situation.
Now I keep a very vigilant eye on our credit report and will continue to do so. No more surprises for us!
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This is the time of year during which most of us will have our credit cards and debit cards out of our wallets more than ever. Holiday shopping, no matter how much we have tightened our belts this year, still causes us to hit the stores with credit in hand – charging up a storm while simultaneously dreading the bill that will follow.
But bills aren’t the only reason to be wary of the more frequent use of our credit cards this holiday season. The physical act of taking this card out of our wallet means that we are more at risk to identity thieves. Whether they glean our information from a quick and experienced glance over our shoulders at the checkout line, or by hacking into what we think are secured pages on the Internet, the fact is that the possibility of our information falling into the wrong hands is a very real one.
In order to stay on top of our information and nip any possibility of identity theft in the bud, making sure to get frequent copies of our credit report is the smart thing to do. The three credit bureaus that are responsible for collecting information for our credit report – and subsequently disseminating it to potential lenders – are Experian, Equifax, and TransUnion. Each credit bureau is required by government regulations to provide each consumer one free credit report a year. Through an online clearinghouse we can order a free credit report from each of the credit bureaus in a matter of minutes.
These free credit reports will certainly alert us to any inaccuracies on our credit report; but more than that, it will give us an immediate notification if something just does not look right – giving us the forewarning that an identity theft may have taken place and allowing us to go straight to the authorities before any more damage is done.
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Lending in this country has certainly changed; there is no doubt about that. Coming into these years we all saw the variety of bad credit loans that were available to those who may not have been necessarily approved for standard loans. These bad credit loans may have come at higher than average interest rates and with stricter terms but they were loans that were still forthcoming. But no longer.
With our credit crisis, lenders have tightened their grasp on loans of all kinds. In some cases there is simply no money to be had. But in most cases there is simply a tighter hold on the purse strings. Lending is at a standstill – even in the case of those who have stellar credit. But for those who have less than perfect credit times are even tougher than ever. And while lending may have dried up that does not mean that our debt has followed suit. What does the average consumer do to weather the storm and keep making payments on debt?
There are options that are alternatives to bad credit loans including a debt consolidation loan. While this may be tough to get through a bank or traditional lending institution, there is still the opportunity to transfer credit card balances to a separate card –one with, perhaps, a lower interest rate - giving consumers the opportunity to make some headway on paying down debt by making one, concentrated payment every month.
The most important thing during this time period is to keep a dedicated eye on our credit report as this will determine how good our prospects will be in the future to receive lines of credit. We are all able to order free credit reports once a year from each of the credit bureaus – something that we should all take advantage of during these vulnerable times.
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Come the New Year most of us will have made many pledges to ourselves, known, of course as New Year’s resolutions during which we will promise to exercise, lose weight, quit smoking, go back to school, and all the other things that we focus on for a few weeks and then slowly let evaporate. Such is the human condition; to embrace a clean slate only to write boldly on that slate again as soon as we get bored. But there are some things that – for our own best interests – we need to fully embrace and adapt our lifestyle to include the changes.
When it comes to our finances, there are a great many of us who will also pledge in the New Year to be more mindful of spending, to put more money in savings, to open up investment accounts, and all the rest. But knowing where we are starting and watching our progress along the way has as much to do with our credit report as anything else. Our credit report is the information that when called upon will give our standing in the world of financial responsibility; it tells of our debt, our late payments made to creditors, loan defaults, that which essentially determines whether or not we are a good enough credit risk for a potential lender, employer, landlord.
It is important, therefore, that all of us know what our credit report is reporting about us as well as our credit score (that number that determines our creditworthiness along a numerical scale). Our credit report is essentially held in three places by three separate credit bureaus but each and every one of them is required by law to provide us with a free credit report once a year if requested. By taking our finances into our hands by requesting a free credit report from each of these bureaus once a year we are making a commitment to staying aware – a very good resolution indeed.
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