Family Issues

FICO scores are words that have no doubt been bandied about in your presence whenever you apply for loans or mortgages in recent times. If you’re still not aware of what FICO scores are and its growing significance in everyone’s lives, then you’re sadly lacking in pertinent information that could spell a great change in your future.

FICO scores may just be the key to a brighter future and look what you know about it – nothing! But today, it’s time to remedy that by simply reading our article about FICO scores, credit repair and how they can affect your lives.

If you’re a person who’s drowning in debts or being attacked by migraines once in a while because you’ve been thinking too much on how to make ends meet and how to guarantee approval for your loan application, do put the ice bag down and read closely. We shall tell you a secret that a lot of people are already aware of but somehow escaped your notice.

FICO scores are scores provided by Fair Isaac and Co., a company that specializes in computing just how good a credit risk you are. There are three credit bureaus in the country and each of these bureaus has their own credit rating systems. While no information is available about how your scores are computed, there are several factors which are sure to be part of the rating system like your payment history, use and length of credit.

If your FICO score is below 550, this means that you’ve a bad credit history and most creditors would be discouraged from extending your deadline, lowering the interest rates they charge you or providing you with a second loan. If your FICO score is from 550 to 660, this simply means that you’re neither good nor bad as a borrower and they’ll probably feel entitled to just charge you with interest rates equal to the industry standards. On the other hand, if you’re such a good borrower that you score well above 660, creditors would be more than happy to lend you a bigger amount of money and provide you with ideal interest rates.

Now, let’s say that you’re unlucky enough to have a FICO score below 550. That’s okay – no need to cry buckets of tears just yet because we still have one trick left up in our sleeves. And that’s credit repair. Credit repair may be achieved through your own efforts or enlisting the aid of a credit repair company. No matter which method you utilize, credit repair shall ensure that your FICO score would increase…without violating any law and therefore bringing you a step closer to financial freedom.

Tags: Credit Reports, Unpaid Debts, budget, Credit Cards, Debt

If you’re an average Joe or Jane with the usual 8 to 5 job, you’re probably also currently experiencing several debt problems and wondering just what you can do about it to qualify for another loan, let me first ask you one simple question before I go ahead and offer help: where have you been?

Credit repair seems to be the next best thing that most people can depend on, right after winning the lottery jackpot. Credit repair is the type of help that all ordinary citizens would no doubt welcome once they understand the mechanics behind it.

If you’re planning to ask for a loan or mortgage for whatever reason and you’re not sure at all if your application will be approved, it’s time to acquaint yourself with credit repair. Only a few people today have blemish-free credit records and unless you’re one of those rare lucky people, you probably have a need for credit repair yourself without being aware of it.

If you have a history of delayed or missing out payments outright, you need to fix your credit if you want to guarantee the success of your loan application. If you owe a lot to your credit cards, that’s yet another strike against you and increases the need for credit repair. Credit repair can erase all those and more through a simple process that you can either do alone or with the aid of a credit repair company.

Credit repair, whether done alone or by a professional, is achieved in several simple steps. First, the person involved has to obtain his own copy of all the credit reports done on him. There are three major credit bureaus in the country and it’s in your interest to procure a copy of your report and score from each bureau. When you have the reports in your hand, review all items carefully and note which ones are inaccurate, erroneous or invalid.

If you’ve succeeded in repairing your credit, this will go a long way in ensuring not only that your loan application would be approved but also entitle you to lower interest rates! That’s right. Creditors usually base customers’ ability to pay on their credit scores and if you manage to repair your credit prior to your application, creditors are more liable to view your application on a favorable light and even provide you with rates that you can easily afford.

And now it’s time to move. Go repair your credit!

Tags: Bad Credit, Unpaid Debts, Debt, Money Lenders, Bankruptcy

You have debts that your budget skills cannot resolve.  And the creditor is now filing charges against you.  If this is the situation, two things may happen to you, a “wage garnishment” or having “time-barred debts”.

Wage garnishment happens when the judge of the court decides that you must pay the creditor but still you are unable to pay, and the court finally gives an order to your employer to give part of your salary to a government executor, who will in turn, give the money to your creditor.  You may imagine your employer and the government man as the bridge (where your money passes through) between you and the creditor.  No one is really happy in this situation.

When this happens, make sure that you are aware of the exact percentage that the court requires to be taken away from your salary.  And then, you must be prepared for other repercussions as well.  For example, the arrangement will be an inconvenience for the employer and this can be discussed thoroughly by other employees, without your presence most of the time.  In other words, you are one of the hot topics in the gossip mill.

Your employer cannot fire you from your job or demote you from your current position.  At least, not because of the wage garnishment.  But you cannot prevent your employer from having a low opinion of you, and your abilities.  From a supervisor’s point of view, someone who could not manage his own financial obligations cannot be trusted to manage his responsibilities in the company.  This would mean that you would not be considered for promotions and your raises would be few and far between.  That new employee who was hired just two months ago may be given the higher position that you’ve worked so hard to earn for a couple of years already.

Time-barred debts, based on the name, indicate debts that are old.  That is, these were incurred three years ago, or even ten years ago.  This implies that the creditor or debt collector can no longer file charges against you in court.  However, they may still contact you through letters or telephone to remind you of your debt and to create an arrangement on how you can pay them.  But they cannot threaten to sue you.   A debt, being time-barred, practically protects you, the borrower, from wage garnishment.  But there would still be some embarrassment involved especially when the creditor calls your work phone and explains in detail your financial situation to an officemate (or supervisor) who just happens to pick up the phone.

When you have a debt that you cannot pay and receives a “threatening” letter from the creditor, you may take consolation with the fact that our Philippine constitution expressly prohibits anyone from going to prison because of debt.  But then, one cannot really escape from one’s debts.  You will pay it, in one way or the other.

Tags: Unpaid Debts, Credit Cards, Credit Repair, Credit Reports, Bankruptcy

Are you in the mortgage market shopping for a loan? Before you do, it is important to understand the common mistakes that mortgage shoppers commit in applying for a loan.

Choose A Loan Provider That Offers the Mortgage at The Best Price Via Telephone Or Newspaper

If you stretch your network, you will most certainly find a rogue that will offer the best deal, but incapable of providing as well as intending to carry on such price. His intention is to lure you in and step up the process along until it is already impossible for to back out. When that point comes, he increases the price and utilizes any method to serve the  purpose.

Remember: Since the market is volatile, lenders or brokers can’t be held to quote a price  unless there is a lock on the prices. A lock is the lender’s conformity to the price.

Presume That You Can Shop Two Lenders on Different Occasions

Since the market is constantly changing, it is difficult to guarantee that prices will be unchanged on different days. It will be a total waste of time provided that you source out lenders in one day.

Request Price Quotation with insufficient information regarding the loan which may have an effect on the price

Many borrowers offer different prices depending on characteristics of the property and manner of transaction which affect risk and cost. Loan size, credit rating, kind of house, capacity to file income and assets, etc.

Acknowledge a Mortgage Broker’s Verbal Guarantee That Lender Has Conformed With The Price

Some brokers notify the borrower that price has been locked, but in truth has not reached an agreement with the lender. If no increase in interest rates happen within the agreed lock date and the closing date, the broker gains extra profit. If interest rates increase during that period, which is improbable but always possible, you are left holding the bag.

Permit A Floating Price Without An Agreement With The Loan Provider
On The Detrmination of Price At Closing

Some borrowers opt to let the price change with the market until shortly before closing. However, only a few loan providers discuss the determination of the market price.

Assume That The Loan Provider  Offers The Best Price On Any Type Of Loan

It does not follow that the loan provider with the best price in one loan category will also offer the best deal in another loan type.

Keep this mistakes in mind and you will not fall into the same pitfall that other borrowers experienced.

Tags: House Mortgage, Borrow Money, Credit, Obtaining a Mortgage, Buy a House

We envy people who needn’t have to borrow money to buy what they want.  But for some of us who have debts, this seemed like an attainable situation in life.  Not necessarily.  Getting out of debt is possible but it needs discipline, persistence, and a little advice on how to save money.

Food is a basic need that we cannot do without.  But remember that though we cannot do without rice for the whole day, we can do without French fries for the whole month.  And so, one of the best things you can do to save money when buying food is to avoid eating out.  Take a lunch with you.  Instead of buying your lunch at work, prepare that lunch together with your breakfast and take it with you to your office.  Meals prepared at home are definitely cheaper than the meals bought at fast food stops and restaurants.  Whenever you feel the itch to get inside the restaurant, be practical and think: Do you really need to eat croissant and drink designer coffee?  If your conscience cannot convince the “child” in you to retreat, then better keep all the receipts and add all the expenses.  The amount you spend could have made a considerable dent to your present debt.

Avoid buying meats that have been pre-cut, such as chicken wings only.  The amount you pay for them is higher because you are also paying the supermarket’s labor in cutting the meat for you.  You can do the cutting yourself.  It is a skill that can be learned.  For example, in cutting chicken, cut at the joints so that you will have an easier time.  Or in wet markets, buy one whole chicken and charm your way to the vendor and request him or her to cut it for you without extra charge.

Try vegetarian dishes.  Meat is significantly more expensive than vegetables.  But veggies can offer the same delicious meal.  Vegetarian dishes are also reputed to be more nutritious and healthful.

Avoid shopping at stores that have higher-priced goods.  Compare the price of milk at one supermarket with that of another.  The difference could be in centavos only, but when added up, you may still save money enough for your fare.

Avoid buying brands.  For example, when choosing soy sauce, you study the price and the volume of each brand and not just pick up the one which is most popular.  A popular brand means that the manufacturer spent lots on money on advertising and so part of the price of that product goes to the various media and talent used.

And last but the not the least, think of this as a mantra:  “Don’t buy what you don’t need.”  Every psychology subject differentiated “wants” from “needs”.  Identify the things you need and go without the “wants”.

Tags: grocery shopping, family, save money, buying food, family budget