The term credit can mean many things. For most people, it is the ability to borrow today and pay later. The idea of “credit-worthiness” defines our personal finances, and reaches out to all parts of our financial lives. Credit can be an accounting term. You can talk about credit cards, your credit history, your credit score, or the three credits you got in college for taking Bowling. This page is the credit nerve center of ThinkGlink.com. From this page you can learn more about what credit means and how having good, bad, or mediocre credit affects your personal finances.
Debt Increases With Payday Loans
When you're paycheck isn't enough to live on or you find you need money you don't have you may decide to get a payday loan. But are payday loans a good idea? When you take out a payday loan you're usually getting an advance on your paycheck and you'll increase your debt. Payday loans often end in exorbitant interest payments and bankruptcy court because debtors cannot repay the debt.
Debt Reduction By Paying Off Higher Interest Loans
The best way to decide which loans to pay off first and reduce debt is to look at the interest rates. Student loans usually have lower interest rates than car loans and are partially tax-deductible. If you have extra money at the end of each month, pay off the highest interest loans first and pay as much into your retirement accounts as you possibly can.
In-Laws Headed For Bankruptcy Court
What can you do when a family member's finances are out of control? Sitting down and discussing numbers can help when you learn a family member has significant credit card debt and out-of-control spending habits.
Monthly Debt Effects Mortgage Loan Eligibility
Any time you take out a loan, whether it is personal, credit card, school, auto, or a mortgage, it lowers the total amount you can borrow to buy real estate in the future. Mortgage lenders take a look at your monthly debt service and subtract that number from the total amount you have available to pay your total debt service.
Tough Choices For Home Owner In Debt
What most folks don't understand about credit these days is that almost no one is turned down. Although your credit score may not be the highest, it may be good enough to get a line of credit or a home equity loan at a fairly decent rate. If you can refinance your mortgage and take out some of the equity that you have, you may be able to do some of the repairs and improvements you need to do to continue living there.
How Consumer Credit Counseling Services Affect Credit Ratings
Consumer credit counseling services and debt management programs can affect a person's credit rating. Entering a debt management program is a much better move than filing for bankruptcy protection. While some lenders may view it negatively, those that work with debt management companies and the participants in their program will view it more positively.
Managing Credit Scores With A Debt Management Payment
There is a lot of confusion in the world of credit counseling, which is why so many consumers have unpleasant experiences. The issue is less whether you are enrolled in the debt management program, but more whether you pay off all of your debts in full. If you negotiate a partial payment with all of your creditors, your credit score may take a hit.
Removing Accounts From Credit Report
Often you will see old accounts on your credit report. There may not be any harm in having old and inactive accounts still being reported on your credit report. If there is a discrepancy on your credit history you can go to the three credit reporting bureaus and file an online dispute.
High Debt And Low Credit Score Spells Trouble
A homeowner and business owner has a low credit score and extremely high credit card debt but wants to refinance an investment property. Having high debt and a low credit score is a bad combination to try to get a mortgage. A high interest rate will be the likely result of trying to refinance with the low score and high debt.