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Quick Tip: Co-signed Contracts September 4, 2011

Posted by CredZoo - Tame Your Credit in New Credit Information, Tips For Good Credit.
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When you agree to be a cosigner for someone else’s debt, you are guaranteeing to pay the debt if the primary borrower fails to pay the debt.  Think carefully whenever you cosign a contract because you may have to pay the full amount of the debt if the primary borrower does not pay even if they go through bankruptcy.  Additional late fees, collection costs, repossession fees are also guaranteed by you when you cosign.

   Example: You cosign a car loan with your child because they do not have the credit score needed to get the loan. A year down the road, the car is repossessed and there is a collection company calling you now for the remaining balance of the car. This is the first you will probably hear about the situation. You now have a repossession and a collection reporting and your scores have dropped 100 points. As a cosigner you are responsible for all balances and charges pertaining to that car loan.

Stay tuned for more great credit tips!

Brought to you by, our friend, Joe Farro, certified mortgage planner at Premier Capital Mortgage

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Tighter Lending Hurts Housing July 7, 2011

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From The WSJ

The percentage of mortgage applications rejected by the nation’s largest lenders increased last year, spotlighting how banks’ cautious lending practices are hampering the nascent housing market recovery.  In all, the nation’s 10 largest mortgage lenders denied 26.8% of loan applications in 2010, an increase from 23.5% in 2009, according to an analysis by The Wall Street
Journal of mortgage data filed with banking regulators.  Although lenders were expected to pull back from the freewheeling conditions that helped inflate the housing bubble, some economists argue they are now too conservative, and say that with the US economy still wobbly, mortgages need to be easier to obtain for qualified borrowers, not harder.  “As the noose on credit availability tightens, credit is being choked off at a time when the housing market is extremely fragile,” says Laurie Goodman, senior managing director at Amherst Securities Group LP.

Christopher Thornberg, a housing economist at Beacon Economics in Los Angeles, counters that “banks are doing what they need to do” to change lending standards in the wake of a “crazy bubble.”  He adds, “You had decades where credit standards were tougher than they are even now.”

Among the would-be borrowers having a harder time are those who have seen their incomes fall or interrupted by a period of unemployment, scenarios that have become increasingly common in recent years. Some self-employed applicants are also hitting barriers to loans—hurdles they didn’t face in the past. Lending standards are still tight in part because government entities
Fannie Mae, Freddie Mac, and the Federal Housing Administration, which collectively account for more than nine in 10 loans being made today, are under heavy pressure to avoid any losses.  Those firms don’t make loans directly but instead purchase or guarantee mortgages that meet their standards, and so have significant influence over which loans banks are willing to approve.

“It’s A Jungle Out There” May 19, 2011

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Have you ever wondered why CredZoo uses the line, “It’s A Jungle Out There” when referring to the world of credit and credit repair? Well do a quick search on google and you’ll find out! People with bad credit are top targets for people and organizations looking to take advantage of someone in a tight spot, with limited (reliable) options. Search for ‘loans for people with bad credit‘ and you get over 25,000,000 results; everything from ‘bad credit daddy’ to ‘snappy money’ promising instant loan processing, no credit checks and unsecured loans with the highest approval rates. Does it sound too good to be true?

    It is! Rooting around through these 25,000,000 websites, trying to find a reputable company to help you repair and restore your credit so you can get a real, reliable loan is exactly why CredZoo says: “It’s A Jungle Out There!” If you’re serious about discussing ways you can improve your credit score, we’re here to help. Our credit specialists are experienced, friendly, and will help you determine the best course of action to achieve your goals — all at no obligation or cost to you. Call us for your free consultation at 888-881-5333.

The WORST Credit Cards May 12, 2011

Posted by CredZoo - Tame Your Credit in New Credit Information, Tips For Good Credit.
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 To identify the world’s worst credit cards, MSN Money writer Liz Pulliam Weston consulted with three of the countries top experts: Curtis Arnold of CardRatings.com, Justin McHenry of Index Credit Cards and Bill Hardekopf of LowCards.com

Their top nominations for the the WORST credit cards are….drumroll please….

  • Macy’s Card

Cards offered by retailers and specialty stores are usually a bad deal, but Macy’s still manages to stand out.

“Almost without fail, (retail) cards charge exorbitant interest rates. The worst offender I know of is the Macy’s credit card, with its 23.99% interest rate,” McHenry said, “but cards from J.C. Penney, American Eagle Outfitters, Gap, Brooks Brothers, J. Crew and Dillard’s all come in at rates over 20%.”

Many people apply for retail cards to get a discount on their purchases, typically 10% to 20% off. But you can often get the same benefits and a better overall deal by applying for a store card that’s affiliated with a major credit card brand.

“If you really want a store credit card, try to get a store card associated with Visa, MasterCard or American Express — those cards generally have interest rates lower than the store-only credit cards,” McHenry said. “For example, I just got a Banana Republic Visa with an interest rate of 14.24%. Compare that to Banana Republic’s store-only card, which charges a rate of 21.9%.”

  • Money Return Platinum Plus Visa from Bank of America

If you pay your balance in full, cards that offer cash rebates are usually a terrific deal… Not this one.

Oh, the terms look sweet at first: no annual fee, 0% for six months on balance transfers and a whopping 10% cash rebate.

You get the 10% cash back, however, only if you carry a balance. And the annual percentage rate for carrying a balance ranges from 9.99% to 19.99%.

“So you pay up to almost a 20% APR to earn (back) only 10% of your interest that you pay out of your pocket,” said Arnold, of CardRatings.com. “Doesn’t take a math genius to figure out that this is a lose-lose proposition.”

You can read more of Liz’s findings on her money basics blog, here!

Why Check Your Credit Report? And How? May 4, 2011

Posted by CredZoo - Tame Your Credit in About CredZoo, Tips For Good Credit.
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Your credit report contains information about where you live, how you pay your bills, and whether you’ve been sued or arrested, or have filed for bankruptcy. Credit reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. The federal Fair Credit Reporting Act (FCRA) promotes the accuracy and privacy of information in the files of the nation’s credit reporting companies. Some financial advisers and consumer advocates, like CredZoo, suggest that you review your credit report periodically. Why?

* Because the information it contains affects whether you can get a loan — and how much you will have to pay to borrow money.

* To make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job.

* To help guard against identity theft. That’s when someone uses your personal information — like your name, your Social Security number, or your credit card number — to commit fraud. Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job.

How to Order Your Free Report

The three nationwide credit reporting companies have set up one website, toll-free telephone number, and mailing address through which you can order your free annual report. To order, visit annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You can use the form in this brochure, or you can print it from ftc.gov/credit. Do not contact the three nationwide credit reporting companies individually. They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

You may order your reports from each of the three nationwide credit reporting companies at the same time, or you can order from only one or two. The law allows you to order one free copy from each of the nationwide credit reporting companies every 12 months.

You need to provide your name, address, Social Security number, and date of birth. If you have moved in the last two years, you may have to provide your previous address. To maintain the security of your file, each nationwide credit reporting company may ask you for some information that only you would know, like the amount of your monthly mortgage payment. Each company may ask you for different information because the information each has in your file may come from different sources.

Obtaining your free credit reports for CredZoo professionals to review is the first step to improving your credit score! You begin by forwarding copies of your credit reports to us from all three of the major credit bureaus. Keep in mind that a recent law which aids in resolving inaccuracies of credit reports, forces the credit bureaus to correspond only with you, not your credit repair firm. Learn more about CredZoo’s credit restoration services right now by clicking here!

(Official Information Courtesy Of The Federal Trade Commission)

The Role Of Debt April 25, 2011

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The final installment – Part VI in our “How to Manage Debt & Credit” posts: The Role Of Debt

Today, carrying installment debt is almost a fact of life. Mortgages, car loans, or small-business loans (to name a few) are part of almost everyone’s life. On the other hand, carrying credit card debt is usually not a good idea. At interest rates of 16% and up, it’s hard to justify keeping savings that could pay off that 18% department-store credit card in the bank at 2%.

Debt and credit play increasingly important roles in our lives. As the aging Baby Boomers get closer to their peak earning years, many are realizing the need to reduce debt and increase savings. Even though analyzing your spending habits and creating a budget to address your debt may seem a little overwhelming, the simplicity of the philosophy of the Depression era still stands: Never spend more than you earn. Once you have come to grips with this basic fact, managing your debt will become far easier and more rewarding.

Summary

  • Installment debt means the loan is paid off in a specified period of time by making predetermined payments periodically.
  • Revolving credit is a line of credit that is instantly available through use of a credit card (and sometimes a check).
  • As you pay down your debt in a revolving line of credit, the minimum payment is also reduced, thus extending your payoff period and, consequently, the interest you pay.
  • Spending more than you earn in any given period is a dangerous practice at best, but doing it over an extended period of time can be financial suicide.
Thanks to Yahoo! Finance

The Basics For Getting A Car Loan March 30, 2011

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Borrowing money to buy a car isn’t hard if you have two things – sufficient income and a good credit rating.  As we showed you last time, if you qualify for a car loan with subprime credit, you are most likely, paying between $4,000 and $10,000 more over the course of the loan just for having credit score issues! So, this makes the first step for getting a car loan getting your credit repaired with CredZoo!

Things you’ll need:

  • Kelley Blue Book
  • Consumer Reports
  • Consumer Reports
  • Internet Access
  • Car Insurance
  • Car Loans
  • Kelley Blue Book
  • Consumer Reports

 

 

The Basic Steps For A Loan:

    • 1
      Choose your new set of wheels and negotiate a price with the seller
    • 2
      Research interest rates. Several Web sites, such as Bankrate.com, publish surveys of loan rates across the United States. Compare the rates with those offered by your local bank, credit union or car dealer.
    • 3
      Find out what your current car is worth as a trade-in. Research values in the Kelley Blue Book Used Car Guide, available at the library, your bank or on the Internet.
    • 4
      Determine how much of a down payment you can make. Use your trade-in value and cash – or just cash – to come up with the standard 20 percent usually required. Talk with the car dealer that has the new car you want.
    • 5
      Apply where you find the best rates, and the length of the loan and monthly payment fit your budget.
    • 6
      Consider saving more for a down payment or choosing a less expensive car if you don’t qualify.
    • 7
      Build a better credit rating if that’s what causes you to be turned down. Try again after six months of paying your bills on time.


(Thanks To EHow.Com)

How Much Does Bad Credit Cost? March 22, 2011

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The cost of credit repair is small compared to the cost of living with bad credit. Below are a few examples from CredZoo.org of the cost of bad credit:

Auto Loan

If you are making vehicle payments, you are, most likely, paying between $4,000 and $10,000 more over the course of the loan just for having credit score issues. This added interest shows up every month in a higher payment.

Example: Car Loan $23,000 Vehicle Financed for 5 Years

Credit Status Rate Payment Interest Paid
High Credit Score 3% $413 $1,796
Slightly Damaged 9% $477 $5,646
Damaged 18% $584 $12,042

Home Loan

Damaged credit on a vehicle is nothing compared to the effect of damaged credit on a home loan. A typical home can cost between $180,000 and $300,000 more in interest of the 30 year loan, if you are buying the home with damaged credit.

Example: $120,000 home paid over 30 years:

Credit Status Rate Payment Interest Paid
High Credit Score 7% $798 $167,410
Slightly Damaged 9% $966 $227,596
Damaged 13% $1,327 $357,878

$190,000 home paid over 30 years:

Credit Status Rate Payment Interest Paid
High Credit Score 7% $1,264 $265,066
Slightly Damaged 9% $1,529 $360,361
Damaged 13% $2,1202 $566,640

What is Subprime? March 1, 2011

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Subprime loans. Subprime lending. Subprime mortgage crisis. Subprime credit category.

We hear it all the time. But what exactly is subprime? Technically, it is a classification of borrowers with a tarnished or limited credit history. Lenders will use a credit scoring system to determine which loans a borrower may qualify for. Subprime loans carry more credit risk, and as such, will carry higher interest rates as well. Approximately 25% of mortgage originations are classified as subprime.

If you have a FICO score below 660, you’re typically considered to be in the subprime category.

When you have a subprime credit score, you can probably still find an unsecured credit card. But the average “bad credit” APR is around 24.5 percent. That’s a pretty scary APR. Most experts agree the best way to reduce your APR, and help boost your credit score out of the subprime category is to check & repair your credit. You could try to go it alone, but as we discussed in our Responsibility Of Credit blog there is no manual, no help file and no teacher to show you how to take on the task of correcting or repairing your credit! Without knowing of the resources available to them, most Americans just live with whatever is on their credit report.

CredZoo can help you put an end to your subprime woes!  We are so confident in our ability to help you, that we challenge you to put us to work for you. Nothing is more important to CredZoo Inc than your credit goals. We are all about results! We offer an easy way to get the credit repair process started – Click here to get started today!

What A Credit Repair Company Can Do For You February 1, 2011

Posted by Chance Daily in New Credit Information.
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Most people have a vague idea on what their credit scores are based: how they’ve paid their bills.  But the truth is much more complicated than that; especially when it comes to bad or incorrect information on credit reports.  Unfortunately most people have no idea that their creditors pay the credit bureaus to put bad marks in their credit file. Creditors are not held highly accountable to remove bad marks even when it’s free for them to do so!

Under the Fair Credit Reporting Act it is left up to the consumer to check and correct any incorrect entries.  This is something you can certainly do if you already know how to talk to the Credit Bureaus and what exactly to put in your dispute.  The problem is that if it isn’t done correctly the credit bureaus will simply ignore your dispute!

Credit repair companies have built their business on knowing how to dispute incorrect information on credit reports and knowing the rules which credit bureaus, creditors and state agencies follow to remove incorrect information on credit reports.

When you choose a Credit Restoration company you’re enlisting a team of industry professionals that can make sure that your credit report will reflect the proper picture of your current credit status. Items which should no longer be reported will come off and your credit picture will improve. This information can include late payments, bankruptcies and judgments.

When looking for a Credit Repair company, be sure to choose one that is a Member of the National Association of Credit Organizations. You can learn more about Credit Repair by visiting CredZoo.org and by following CredZoo’s blog, right here at credzoo.wordpress.com!