Finance Debt – Immo Gironde Sun, 19 Sep 2021 03:19:40 +0000 en-US hourly 1 Finance Debt – Immo Gironde 32 32 About half of Americans say a second pacing check is absolutely necessary. But will there be one? Thu, 11 Mar 2021 06:19:01 +0000

The $ 1,200 stimulus checks that were handed out under the CARES Act served as a lifeline for cash-strapped Americans who were immediately affected by the COVID-19 crisis. But as useful as these payments may have been, for many people they are long gone. And like our current recession continues to rage, many Americans remain desperate for some follow-up relief.

In fact, 49% of Americans say a second stimulus check is very important to their finances, according to SimplyWise July 2020 Confidence in Retirement Index. Meanwhile, 25% say a follow-up dunning check is somewhat important to them.

Given that most Americans expect our current recession to last until 2021, this sentiment makes sense. But it remains to be determined whether there will actually be a second stimulus.

Image source: Getty Images.

Lawmakers met with relief

Democratic lawmakers introduced a bill called the HEROES Act in May that provides, among other things, for a follow-on stimulus payment that would cap at $ 1,200 per eligible person. But Republican lawmakers backed off. Their main arguments are:

  1. A second stimulus check will cost too much.
  2. A second stimulus check is not necessary to reopen the economy.
  3. A second stimulus is not as vital since unemployment has fallen.

But here’s why these arguments don’t hold up. First, while a follow-up stimulus is indeed expensive, the cost to our economy could be enormous if Americans not get that relief. More and more rents and mortgage payments will be in arrears. Invoices will be missed. Those who lived on paychecks before the pandemic may be forced into debt that they ultimately do not fix. And without more money to pump into the economy, businesses won’t get the income they need to stay afloat.

Second, while it is true that a large part of the economy To reopened since the introduction of the HEROES Act, it is clear that many states have reopened too soon, as evidenced by the recent wave of COVID-19 cases which greatly worries public health officials. In fact, some states are already slowing down reopening plans and imposing new restrictions, which could ultimately bring the economy back to its April level.

Finally, while it is true that the unemployment rates in May and June were lower than the disastrous ones in April 14.7% unemployment rate, the numbers are still very high. The unemployment rate in June was 11.1%, which is a far cry from the 3.5% unemployment rate that existed in February, before the pandemic. Additionally, as more states impose lockdowns, we could see increased job losses – especially in already hard hit industries like restaurants and retail.

Obviously, there is a good argument for a second stimulus check, but we won’t know if we’re in the cards until lawmakers start to clear the air once again. returned to the Senate on July 20 after an extended suspension. At this point, there may be additional stimulus proposals to consider besides the HEROES Act, which Republicans have expressly opposed.

Even though there is is a second stimulus payment, there is no guarantee that it will mimic the $ 1,200 that the CARES Act allowed. But given the number of Americans who are in desperate need of an influx of cash, all a lump sum payment is surely better than no stimulus at all.

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60% of companies don’t hire an employee with a low credit score: here’s what it means Thu, 11 Mar 2021 06:19:01 +0000

It is increasingly common for businesses, especially in the financial industry, to perform a credit check on potential employees as a condition of hiring.

Bad credit can get you in trouble and prevent you from getting the job you want. The situation can be much more difficult if you have a history of bankruptcy.

A recent study by the Society for Human Resource Management (SHRM) showed that 60 percent of employers pull credit reports from current and potential employees. This is done to determine how financially stable you are.

Recently, employers, especially finance and software companies, have asked potential applicants to submit their CIBIL credit information report at the time of their interview.

With this in mind, a person should continue to check their report to ensure that the correct information is included in the report.

So what exactly is a credit score?

A credit score is a 3 digit number that shows you the numerical summary of your credit health. This score is obtained by the credit bureaus, by analyzing your credit history.

This is one of the determining factors for the approval of a loan or credit card application.

This score is affected by a series of factors such as payment and borrowing methods, number of credit card or loan applications, credit usage, etc.

The score typically ranges from 300 to 900 points and higher scores suggest more chances of getting your loans approved.

Scores above 700 are usually an indicator of good credit management. So, it goes without saying that the higher your number, the better you look to lenders and now employers.

Why getting a credit report is important

Getting a credit report is just as important as a credit score. It includes a person’s credit history with detailed information about their credit accounts and loans, bankruptcies and late payments, in addition to their personal information.
It is issued by approved credit information companies.

Credit scores are checked as part of the background check

Employers from different industries typically check credit scores or go through credit reports as part of the background check process before hiring potential candidates.

It has been observed over the years that many companies have started to focus on the financial health of an individual in order to assess several personal attributes such as reliability and honesty.

The logic is supposed to be that bad credit scores would imply that the person is bad at managing their finances, which is bound to have an impact on their performance at work.

3 ways credit scores are linked to employability


While there may be real reasons for a person’s bad credit or bad report, employers may perceive this as a sign of irresponsibility and inability to take care of things. Just as businesses and employers are wary of criminal records, an extremely bad credit report can have the same effect.


Additionally, employers may perceive someone with a bad credit history as dishonest and a potential threat to the workplace. While this remains questionable in other circles, from an employers’ point of view, they would much prefer to minimize the risk.


Finally, a bad credit report is indicative of a debt trap that most often affects people’s performance at work. Although this is not always the case, many employers see it this way.

How to make sure your credit score doesn’t hurt your employability

The best way to do this is to make sure that your credit history doesn’t reveal any negative credit history. To do this, there are some things to remember that can help you maintain control over your credit history, such as repayment history information.

The repayment history information (RHI) consists of existing and missed consumer credit payments that are included on your credit report.

In some cases, your RHI can be used by credit providers to assess your ability to afford a new loan or credit card. In other cases, employers may refer to your RHI in your credit report to assess your credit history.

In addition to this, applicants should be careful of any possible errors in their credit report, false information passed on to CIBIL – which could negatively impact the report.

By regularly checking your credit report, you can make sure that your credit reports stay positive and that good career opportunities are not missed.

– Article by Nipa Modi, Director, SecUR Credentials

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Americans are increasingly obsessed with their credit rating Thu, 11 Mar 2021 06:19:01 +0000

A growing share of Americans say they know the three-digit number that influences their ability to find an apartment, buy a car and even finance a smartphone, according to a new survey from Discover Financial Services.

According to Discover’s 2018 Credit Health Survey, 85% of U.S. consumers know their creditworthiness. Illinois-based Discover credit card issuer reports awareness jumped 12 percentage points from 73 percent last year.

“It’s easier than ever for consumers to go out and check their scores at no cost to them,” says Jeff Bielski, vice president of marketing for Discover.

A variety of companies provide tools for consumers to track their creditworthiness, including Discover’s credit score card and Intuit’s Turbo. The services offer flexible credit drawings that do not adversely affect users’ credit scores.

Millennials check their FICO scores, VantageScores and other metrics showing their ability to take out a loan more than other generations. Seventy percent of 18-34 year olds have checked their score more than once in the past year, compared to 67 percent of Gen Xers 35 to 54 and 61 percent of baby boomers.

Q: Do you know your creditworthiness?
Yes 77% 86% 91%
No 14% 8% 5%
Not sure 9% 6% 4%

According to the survey, a few particularly obsessive people (12%) have checked their credit score 12 or more times in the past year.

Those who check in the most regularly see their scores improve the most, says Bielski.

Baby boomers may be less worried about their credit rating than younger adults, as many of the older generation already have strong ratings. Over half of those 55 and over (52%) said they have an exceptional credit score, compared to 28% of Gen X and 11% of Gen Y.

What is a good credit score?

Q: What is your current credit rating?
Exceptional (800 – 850) 11.0% 27.6% 51.8%
Very good (740 – 799) 27.6% 21.7% 23.7%
Good (670 – 739) 20.0% 18.1% 10.2%
Fair (580 – 669) 14.1% 14.5% 6.5%
Poor (300 – 579) 10.3% 10.6% 1.7%
I don’t know what my credit rating is 10.0% 5.6% 5.2%
I don’t have a credit score 6.9% 1.9% 0.9%

A FICO score of 800 or more is considered exceptional. The 670 and up range is “good to exceptional”. And 669 or less is rated as fair or poor, according to Discover.

Most respondents to the Discover survey (71%) said their current credit score was between good and exceptional. Find out worked with Research Now SSI to get the results. The market research company asked 2,005 questions of adults about their creditworthiness and online reputation from June 9 to 19.

In 2017, the average VantageScore was 675, the highest since 2012, according to Experian. Last year’s average FICO score was 700, according to Fair Isaac Corp.

“If your credit score is well below 700, there is definitely room for improvement,” says Greg McBride, CFA, chief financial analyst for

How do you improve your credit score?

Most U.S. consumers (61%) are actively trying to improve their credit rating, according to the Discover survey.

“People focus on the details of credit scores, but two-thirds of your score comes from paying your bills on time and keeping your debt low compared to your available credit,” says McBride.

Consumers can request free copies of their credit reports each year from each of the three major credit bureaus: Equifax, Experian, and TransUnion. Copies can be obtained online at These reports do not provide consumers with their credit scores, but rather the underlying information about payments and debts that helps inform these metrics.

“Taking a copy of your credit report is a great way to make sure everything is correct, to be on your guard against potential identity theft, and to be truly informed about the parts of your credit score,” says McBride.

He recommends that people run a different report every four months to check for errors and stay up to date with their creditworthiness. To improve their numbers, McBride recommends paying bills on time and reducing debt.

When you use less than 30% of your available credit, your debt no longer counts negatively in your score. And if you manage to use less than 10%, your debt-to-credit ratio will start to positively impact your creditworthiness, he says.

“If you pay your bills on time and use credit sparingly and in moderation, there’s no reason a score of 700 can’t become a score of 800,” says McBride.

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How Community Mortgages Work Thu, 11 Mar 2021 06:19:00 +0000

If you haven’t saved thousands for a down payment and closing costs, Community Seconds and Affordable Seconds, two mortgage programs, can help close the gap. Both allow low and moderate income homebuyers to finance these costs instead of paying them up front.

What is a Community Seconds or Affordable Seconds mortgage?

Fannie Mae’s Community Seconds and Freddie Mac’s Affordable Seconds are second mortgage programs that can help you to buy a house if you don’t have a lot of money saved. These second mortgages are used in conjunction with a first mortgage, such as a HomeReady or Home Possible mortgage, and can be used to pay down a home down payment, closing costs, renovations, and home improvement. other initial expenses. With the combination of the two mortgages, buyers don’t have to put anything on the purchase.

The funding, however, does not come from Fannie Mae or Freddie Mac. Instead, it comes from a public or private source, such as:

  • Federal agencies
  • Municipalities, counties or the state
  • Local or state housing finance authorities
  • Non-profit organizations (not credit unions)
  • Federal regional mortgage banks
  • Native American tribes recognized by the federal government
  • Employers

The repayment of the second mortgage can be structured in different ways and depends on the program. Some acceptable means include:

  • Fixed monthly payments
  • Deferred payments for a time, then fixed monthly payments
  • Deferred payments for the life of the loan (unless the house is sold)

In the case of a grant or similar source of funds, the second mortgage could instead be canceled after a certain period of time.

Who is eligible for Community Seconds or Affordable Seconds mortgages?

Homebuyers interested in these programs should purchase a home to use as a primary residence, not a second home or investment property.

Depending on the funding source, buyers might also be subject to income thresholds or other requirements, such as a home buyers education course or, in the case of an employer program, some time spent with the business or organization.

Community seconds and affordable seconds requirements

Each organization offering Community Seconds and Affordable Seconds funding has their own specific program criteria, informed by guidelines from Fannie Mae and Freddie Mac. These guidelines include:

Community seconds

  • Combined loan to value ratio (CLTV) for first and second mortgages can go up to 105 percent.
  • The first mortgage can be a fixed rate or an adjustable rate loan, as long as the adjustable rate loan has an initial fixed rate term of at least five years.
  • The second mortgage can finance the down payment, closing costs, renovations, or a permanent interest rate buyout (paying points).
  • The interest rate on the second mortgage (if there is one) cannot be more than two percentage points higher than the rate on the first mortgage.
  • The second mortgage cannot be funded through “premium pricing,” which means the borrower cannot pay a higher interest rate on the first mortgage to get credit at closing. (Some housing finance agencies, however, are exempt from this limitation.)

Affordable seconds

  • The CLTV for first and second mortgages can be up to 105% if the first mortgage is a Home Possible or HomeOne loan. The CLTV can go up to 95% if the first mortgage is a conventional loan.
  • The first mortgage can be a fixed rate or an adjustable rate loan, as long as the adjustable rate loan has an initial fixed rate term of at least five years.
  • The second mortgage can finance the down payment or closing costs.
  • The interest rate on the second mortgage (if there is one) cannot be more than two percentage points higher than the rate on the first mortgage.

Community seconds and affordable seconds: advantages and disadvantages

Advantages The inconvenients
  • Accelerates the path to homeownership for those who don’t have a lot of savings
  • Can borrow all or part of the down payment, closing costs and other expenses
  • May be able to defer payments or have second mortgage debt canceled over time, depending on the program
  • A second mortgage is added to your total debt and interest costs (unless the debt is canceled over time)
  • Potential for a larger total monthly payment
  • Cannot be used for a second home or investment property

Other down payment assistance options

Community Seconds and Affordable Seconds are financing options that can help you buy a home sooner if your savings are limited. However, there are other down payment assistance programs you may also be eligible, particularly if you are a first-time buyer (which usually means you haven’t owned a home in the past three years). Start with the US Department of Housing and Urban Development state search, where you can check the assistance programs of your local housing authority.

Learn more:

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12 best credit card signup bonus offers for September 2021 Thu, 11 Mar 2021 06:19:00 +0000

Alternatives to consider

The best credit card signup bonus can deliver tremendous value. But there are other types of credit cards that may be worth even more, depending on your situation. As you compare credit cards, see if any of the following could save you more money than a signup bonus.

0% introduction of APR credit cards

An introductory 0% APR credit card offers zero interest on purchases during an introductory period. If you have large expenses that you can’t pay in full, one of these cards can save you quite a bit of money in interest. Many introductory 0% APR cards do not charge interest for the first year or more. You can pay for large purchases up front and then pay them off gradually before the introductory 0% APR ends.

Balance Transfer Credit Cards

A balance transfer credit card offers no interest on balance transfers during an introductory period. This can be a good deal if you have a high interest rate debt that you are paying off. All balance transfer credit cards allow you to transfer balances from other credit cards, making them perfect for saving money while eliminating credit card debt. Some also allow you to transfer on other types of debt.

Rewards credit cards

Rewards cards cover all credit cards that earn shopping rewards. This includes cash back credit cards, travel credit cards, and store credit cards. You can find many reward credit cards with signup bonuses, but there are also reward cards without this kind of introductory offer. It’s a good idea to check rewards cards with and without sign-up bonuses. You can find a rewards card that is still very valuable despite the lack of bonuses.

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How to use your rent payments to build good credit Thu, 11 Mar 2021 06:19:00 +0000

If you live in a rented apartment or house and are concerned about paying your rent on time and in full, you might be wondering: Does rent affect your credit score? If you’re looking to increase or develop your credit, being a good tenant should help, right?

Historically, rent has not had much of an effect on your credit score. However, that has changed in recent years. Some newer services allow these monthly rent payments to contribute to your credit history, much like a credit card or loan would. It can help you improve or strengthen your credit if you don’t have a lot of history.

But it is not an automatic process. Here are some of the most frequently asked questions on how to build up credit by paying rent:

Does paying rent create credit?
How to build a loan with rent?
What services will help you declare your rent yourself?
What’s in the fine print of rent reporting services?
Will missed rent payments hurt my credit?
What are the other credit creation options?

Does paying rent create credit?

You don’t have a credit score that only reflects the rent. That said, each of the major credit bureaus – Equifax, Experian, and TransUnion – can list rental payment history on your credit report, provided you receive the information. You need to make sure that your rent payments are reported to one or more of the bureaus so that they can be included on your credit report.

Once this happens, there are four credit score models that use the rental payment history on your credit report when calculating your credit rating. VantageScores 3.0 and 4.0 can include rental history in their scoring models, and two FICO-based scoring models, the FICO 9 and FICO XD, also allow this. Notably, however, the most commonly used FICO model, the FICO Score 8, does not factor rent payments into its calculations.

That said, many future lenders and creditors you might work with will use a representative sample of credit scores – VantageScore, FICO, and others – to determine your creditworthiness.

How to build a loan with rent?

Having good credit can help you get loans, credit cards, and apartment rentals. A relatively easy way to create or increase credit with your rent is to register your payments with one of the many rental assessment companies, who will then pass the information on to the credit bureaus.

Some large property management companies may already report office rent payment information, but smaller landlords may be less familiar with the concept. Ask your landlord or management company if they are registered with a company that reports rental data to one of the credit bureaus.

It can be helpful to provide your landlord with information about services they can work with, especially those that require them to engage. Some of these services will even facilitate payments between you and your landlord or management company.

For example, Experian RentBureau works with electronic rental payment companies to allow your payments to be automatically deducted from your bank account and sent to your landlord’s account. This means that there are no more direct payments from you to the owner. This can benefit your landlord by encouraging tenants to make timely payments. Then you can sign up through this service to have your rental payments reported to Experian. The services that Experian RentBureau works with include RentTrack, Rentler, eRentPayment and ClearNow.

What services will help you declare your rent yourself?

If your landlord or management company doesn’t want to opt for a declaration service, here are some of the services you can use yourself to report your rent payments yourself. Keep in mind, however, that some come at a cost.

  • Kharma rental reports rent payments to TransUnion and gives tenants the option to add the last six months of payments to their credit reports. There is a flat registration fee of $ 50, and you can add a spouse or roommate for $ 25. It costs $ 8.95 per month for ongoing reporting services, and an additional $ 5 per month if you have a spouse or roommate. You can also add your entire rental history to your current home, including that of your roommate or spouse, for $ 60.
  • Rent Reporters retroactively report rent going back two years, paid by a one-time listing fee of $ 94.95, which also covers landlord verification. The monthly subscription fee is $ 9.95, which covers the ongoing reporting of rent payments.
  • Comfortable allows you to report your rent payments to Experian through its app if you make rent payments through its platform. Rent payment via Cozy is free if you use your bank account. A 2.75% service charge applies if you use your debit or credit card. You can also purchase additional services – such as background and credit checks, as well as tenant insurance – from Cozy.
  • MoCaFi is a platform focused on providing services to the underbanked and helping them improve their credit. If you get a prepaid card with MoCaFi, you can use its app to report your rent payments to Equifax and TransUnion. You also have access to VantageScore Tracker by Equifax.
  • Rent payment is a free service that allows you to report your rent each month to TransUnion and build your credit.

What’s in the fine print of rent reporting services?

As with any service, be sure to read the fine print of any payment service and review the details of any given deal before signing up, even the free ones.

Confirm how a rental valuation agency will protect your personal information, check which credit bureau your rent will be reported to, and how long it will take to show up on your credit report. Also make sure you understand what you will need to pay for the service and what its cancellation policies are.

Once you’ve signed up for a rental reporting service, you can optionally check how your payments show up on your credit reports, depending on which bureau (s) the platform reports to. You are entitled to a free credit report each year from the three major bureaus, which you can get at

Are missed rent payments bad for my credit?

Reporting your rent payments is more likely to have a positive rather than a negative effect on your credit score, if it has a significant effect. Late rent payments may not show up on your credit report at all if you use a rent payment and declaration service. For example, Cozy notes that your report will just show “no activity” for the month if you miss a payment, instead of showing it as overdue.

That said, your credit can still be affected by defaulting on your rent. This is because your landlord can send your unpaid rent debts to a collection agency, who can then report it to the credit bureaus. Your credit can suffer for up to seven years from having an account in collection.

So whether or not you use a rent declaration service, you should always:

  1. Pay your rent on time and in full: Just like paying with a credit card or loan, always pay your rent on time (the sooner the better).
  2. Respect your budget: You need to be able to pay your rent to be able to pay on time. According to 50/30/20 budget rule, no more than 50% of your net monthly salary should include housing costs. And if your rent absorbs all 50%, you may be paying too much.

Also be aware that just looking for an apartment or house to rent won’t hurt your credit, but landlords will often make a mistake. firm credit check once you have applied to rent accommodation. This can hurt your credit slightly, although one request shouldn’t have too much of a negative effect.

Overall, having a good credit score will make it easier for you to get a rental. Having a low or no credit history may mean you need to have a co-signer or guarantor to rent accommodation.

What are the other credit creation options?

What options other than renting can help you build your credit?

Even if you don’t qualify for a regular credit card, try a secure credit card, which is designed to help people with bad or no credit build a strong credit history.

You can also consider building up your credit through a savings account. Self’s Credit Builder, for example, is a service that provides a “loan” that the company holds in a certificate of deposit account for one year.

During the year, you can make monthly payments on time for this loan, and these payments are reported to major credit bureaus. Once the loan is paid off, you can withdraw the funds from the CD.

You can also check out other tips on how to build good credit from scratch.

Rebecca Stropoli contributed to this report

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Warren Buffett bans shareholders from attending Berkshire Hathaway’s 2020 annual meeting due to pandemic Thu, 11 Mar 2021 06:19:00 +0000

Warren Buffett announced on Friday morning the Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) the annual meeting would go ahead as planned on May 2, but due to the COVID-19 coronavirus pandemic, shareholders will not be allowed to attend.

The only people who will be at the meeting will be Buffett, possibly Charlie Munger, and a few employees to deliver proxy votes to investors.

Image source: The Motley Fool.

As the pandemic escalates around the world, Buffett is considering how to proceed with the annual meeting of shareholders, which has become something of a pilgrimage among some investors. Tens of thousands of people flock to Omaha every year to attend, and the meetings have over time taken a turn. carnival atmosphere with Buffett dancing, singing and performing skits.

It wasn’t always like this: the first annual meeting in 1973 was held in the dining room of an insurance company Berkshire had bought. But as Buffett’s investments increased and his keen sense gained legendary status, people discovered that they wanted to see the Oracle of Omaha in person and hear his opinions firsthand.

In recent days, however, Buffett has worried about the health risk created by so many people coming together for the three-day affair. Just a few days ago, he had planned to wait until early April to make a decision on the annual meeting.

Yet in a Press release Released Friday morning, Buffett said “events have moved very quickly” since the company released its annual report on February 22. Instead of risking Omaha becoming a pandemic “hot spot”, Berkshire Hathaway will ban shareholder participation.

The meeting, however, will be webcast live on Yahoo !, and one or more reporters may be permitted to attend so that they can ask the questions referred to them.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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“It is high time to change the flag of … Mississippi” Thu, 11 Mar 2021 06:19:00 +0000

JACKSON, Mississippi (WLBT) – SEC commissioner Greg Sankey has now weighed in on the Mississippi flag controversy.

In a tweet released Thursday by the Southeastern Conference, Sankey said it was “high time” for Mississippi to change its flag.

“Our students deserve an opportunity to learn and compete in inclusive and welcoming environments for all,” Sankey writes.

He then says that if Mississippi does not change flags, consideration will be given to excluding SEC championship events in the state.

Mississippi State University athletic director John Cohen responded to Sankey, saying, in part, “We are disappointed that our student-athletes and coaches are potentially affected by something beyond their control.

Cohen would also say that the university understands Sankey’s position and that MSU “is proud to be among the most diverse universities in the SEC.”

“Alongside the university leadership, we aim to continue our support for the changing of the state flag, which should unite us and not divide us,” Cohen concluded.

In a message from Chancellor Glenn Boyce and Vice Chancellor for Intercollegiate Athletics Keith Carter to Ole Miss, they say the university concluded several years ago that the “Confederate battle flag did not represent many of our fundamental values”.

“In 2015, the university stopped flying the state flag on our campus,” the post read, also indicating that Mississippi needs a flag that represents “the qualities of our state that unite us, not those that still divide us “.

Both agree with the SEC’s position to change the Mississippi flag into something more welcoming and inclusive to the people.

Copyright 2020 WLBT. All rights reserved.

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Where can I go to get a car loan? Thu, 11 Mar 2021 06:19:00 +0000

Knowing where to go to get your next car loan is important to avoid being refused unnecessarily. There are different types of lenders for different borrowers, so choosing the one that meets your needs is essential. If you’re struggling with bad credit, the loan process doesn’t start with choosing a vehicle, but with the right lender.

Types of auto loans

When you have poor credit, it can be more difficult to get approved for big ticket items like car loans. However, if you are working with the right kind of lenders, they have processes in place to help you get a car loan. Because getting your car loan off on the right foot is so important, you need to know where to start.

Generally, there are three main types of financing you can get for a car loan, depending on your situation and your needs:

  1. Direct loans, what most people think of when they talk about traditional loans, come from banks, credit unions, or online lenders. These loans are generally reserved for borrowers with good credit scores. If your credit score is around 660 or less, you may have better luck with a different type of auto loan.
  2. Lenders at risk are intended for borrowers who are not eligible for a direct loan. Those lenders know that people who have credit problems problems are more than just a credit score and use as much personal and financial information as possible to help them get a better picture of your situation. These lenders are sometimes referred to as bad credit lenders, and they can work with people in many different credit situations. However, subprime auto loans are indirect loans and you can only get one by applying to a special finance dealership.
  3. Buy here pay here resellers are for borrowers who are unable to qualify for a subprime auto loan. These dealerships specialize in in-house financing and are not as prone to checking your credit as other types of lenders. This makes it a good choice for second chance funding if you’ve already been turned down. However, this type of car loan may not be as useful as you hoped. The price of skipping the credit check can really take its toll, and in some cases you can end up paying a lot more than what you bargained for for a used vehicle here.

As you can see, there are many lenders that you can choose from. Your personal situation and what your credit reports say about you will dictate the next step.

Your credit score is important

To know what type of auto loan is best for your credit situation, you need to know your credit rating and what is on your credit reports. You can stay on top of your credit score by signing up for a credit monitoring service, or find it through your credit cards, bank, or credit union, many of which provide it for free.

In order to see what is impacting your credit score, you should also get a copy of your credit reports. Until April 2021, you have the right to get a free copy of your credit reports from each of the three national credit bureaus once a week. You can request them by visiting

Knowing what’s on your credit reports lets you know what lenders are seeing, which gives you a bargaining chip if they are trying to determine your credit for you. If you know your credit score, you also have the power to research possible interest rates so you know what type of deal you might qualify for. Your credit score is the most important factor in determining your interest rate.

If you find that your credit score is low, don’t assume you’re not in the hunt for a good deal. There are many options for getting a car loan if you are working with the right lenders for the job.

The Bad Credit Auto Loan Process

Applying to a subprime lender is often the best choice for consumers with credit difficulties, but the process may seem a little different than you might imagine. Instead of choosing a particular vehicle and then finding financing for it, you first need to find a dealership with the right loan resources.

Before you go to the dealership, it’s important to put together all the documents you need to prove to the lender that you meet their requirements for a car loan. Although the details may vary by lender, all subprime lenders have similar qualifications that you must meet.

These include proving that you qualify for income and employment, have residential stability, and are ready to invest in your own car loan success.

Generally, proving that you meet these requirements means providing the following to the dealer:

  • Check heels – Lenders should know that you are earning enough money to pay off a car loan. They therefore require proof of income with a computer generated check stub showing cumulative income for the year. Typically, subprime lenders ask you to earn around $ 1,500 to $ 2,500 per month before taxes.
  • Utility bills or bank statements – These are used to prove your residency. They must be in your name and correspond to the address you currently live in and that you provided on the application.
  • Telephone bill – Lenders need to be sure they can contact you when they need it, so they require proof of a landline or cell phone contracted in your name.
  • Personal references – Most lenders always ask you to provide a list of around five to eight personal references with full contact information.
  • A deposit – This shows that you are ready to have some skin in the game. The amount you will likely need can vary, but many subprime lenders charge a minimum of $ 1,000 or 10% of the vehicle’s selling price.
  • Driver’s license or state card – Some lenders only require state ID, but you need a valid driver’s license to drive the car. Any form or ID you use must be valid, which means it is not suspended, expired, or revoked.

Once you provide these documents to your dealership, they act as an intermediary between you and the lender. The dealer reviews your documents and your application, then presents them to the lender for approval. If your financing request is approved, the lender notifies the dealer of the maximum monthly payment for which you are eligible.

The dealership then assembles a list of vehicles in inventory that match the payment guidelines provided by the lender. You can take a test drive and choose a car from among them, fill out your paperwork, make the necessary upfront payments (down payment, taxes, title, license, and documentation fees), and pick up your vehicle.

Ready to start?

Now that you know that you have options for getting an auto loan, you need to decide which type of lender is best for you. If you are having credit problems, a subprime lender may offer you the best opportunity for a car loan. But, knowing where to find these lenders can be difficult.

Subprime lenders are indirect lenders who only operate through special finance concessionaires. It can be hard to tell these dealers apart from the rest, but we know where to start! Here has Auto Express Credit, we work with a nationwide network of special finance dealers who team up with the lenders you are looking for.

To be matched with a dealer in your area, complete our quick auto loan application form. Let us help you take the hassle out of finding a loan, start now!

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10 tips to increase your credit score and avoid mortgage rejection Thu, 11 Mar 2021 06:18:59 +0000

More than one in five would-be homeowners blame bad credit for failing their home purchases, citing this as the reason their mortgage application is turned down.

According to a survey commissioned by mortgage broker, Haysto, having a bad credit history is the reason for 22 percent of mortgage refusals.

The survey found that 29% of Britons thought their credit rating was neither ‘good’ or ‘excellent’, while 70% feared they could not get a mortgage because of their rating.

More than one in four Britons do not think their credit rating is “good” or “excellent” according to the survey. The research was conducted by Without Barriers and interviewed 2,012 UK adults.

More than one in ten respondents did not know their credit rating, while eight percent said they had a “bad” credit rating and five percent said theirs was “very bad”.

A credit report displays a list of a person’s credit accounts, such as bank accounts, credit cards, utilities, and mortgages.

It will also display their refund history including late or missing payments.

When a person applies for a loan or mortgage, the lender will look at their credit report in addition to their proof of income and bank statements.

They will perform a credit check, often leaving a record on the person’s credit report which in some cases may be visible to other lenders.

“Lenders use credit scores as part of their risk assessment when determining whether or not to lend,” says Mark Harris, managing director of mortgage broker SPF Private Clients. “The higher the score, the lower the perceived risk of lending you.

“Riskier mortgages, for example, a higher loan-to-value ratio or larger loan amounts, will generally require the borrower to have a higher credit score. “

This is Money spoke with John Webb, Credit Expert at Experian, and Brian Murphy, Loan Manager at Mortgage Advice Bureau, on how to improve your credit score and increase your chances of being accepted for a mortgage loan.

Experian Credit Score Strips

Very poor: 0 – 560

Poor: 561 – 720

Fair: 721 – 880

Good: 881 – 960

Excellent: 961 – 999

1) Register on the list of electors at your current address

“In addition to helping confirm your name and address, it contributes up to 50 points to your Experian credit score, as this is considered a sign of stability and reliability,” explains Webb.

2) Use a credit card responsibly and always try to keep a good amount of credit available

Available credit is the difference between your outstanding balance and your total credit limit.

“If your available credit is low, it would signal lenders that you are having trouble keeping tabs on your finances,” says Murphy.

“Keeping card balances below 30% of the limit can earn 90 points, while using more than 90% of a credit card’s limit can reduce your Experian credit score by about 50 points. Adds Webb.

3) Check your credit report regularly and ask for errors to be corrected

It could be duplicate or incorrect accounts, an incorrectly recorded missed payment, or even a fraudulent loan taken out in your name.

“A single late payment can wipe out 130 points from your Experian credit score, so make sure your report reflects the facts,” says Webb.

4) never withdraw money from your credit card

“This will factor into your credit score because it looks like you need to make the withdrawal because you don’t have any money left in your own bank account – even if you don’t,” says Murphy.

5) Limit new credit requests

“Space all the credit requests you make and shop around using eligibility checking services, which don’t affect your score,” says Webb.

“Not applying for new credit for six months can increase your Experian score by 50 points.

“Lenders like to see accounts with good payment history, so having a new account opened in the past six months can lower your Experian credit score by up to 40 points.”


There are several ways to view your rating and history for free.

Experiential and Equifax offer 30-day free trials of their online service, but you’ll need to remember to cancel before the promotion ends to avoid subscription fees.

Verify my file also offers a free trial to check your reports with Equifax and Callcredit.

Alternatively, you can request a snapshot excluding any score by requesting a statutory credit report online or by mail for £ 2 from each branch.

Free credit report options can also be found by visiting Credit Karma and Clearscore.

6) if you have bad credit, stop asking for more credit

“If you know for a fact that you have bad credit, doing multiple credit searches in a short period of time can work against you,” says Murphy.

“It is advisable that in the meantime, you no longer apply for credit and instead focus on clearing your existing debt.”

7) If you don’t have a credit card, get one – but just make sure you pay it off every month.

Have an account

Having an account “in default” with a lender for ongoing missed payments could lower your Experian credit score by up to 350 points, while if a credit provider, lender, or utility sues you for a loss. unpaid debt, this could reduce your Experian Marquez credit by up to 250 points.

Having a credit card will help you build your credit history and, if used responsibly, it will boost your score.

Having no history of credit management means that lenders will have a harder time figuring out who you are.

“It’s a good idea to think of your credit report as your financial resume,” says Webb.

“You wouldn’t want to apply for a job and let an employer see your resume without first checking that it’s up to date and that it paints the best picture of you. ”

8) don’t miss refunds

It may seem obvious, but missing payments will have a bad effect on your credit score.

“Despite your tireless efforts to do everything else, the missing repayments show that you are unable to manage your finances and pay your bills on time – which is not great if you are trying to get a mortgage,” explains Murphy.

9) let your credit history mature

“Holding the same credit card, for example, for five years can add 20 points to your Experian credit score,” says Webb.

10) don’t keep unused cards

“Holding on to credit cards that you no longer use is not only a threat of fraud, but can also be misleading about the amount of credit available – so be sure to cancel any accounts you don’t. not use and cut the card before throwing it away, ”says Murphy.

Some links in this article may be affiliate links. If you click on it, we may earn a small commission. This helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

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