Cosigning on a loan can be a great way to help a family member or close friend when they need help, but it can also be a great way to ruin your own credit if things do not work out.Before you decide to cosign on a loan, you should always read the cosigning agreement that lenders have for these. By law, the lender must show you a copy of the agreement before you sign for the loan. In some states this is called a cosigner's notice.The cosigner's...more
Many consumers know that they have a credit score but they may not know what the score is. As well, many consumers know that there are some actions or inactions that they can take that will help or hurt their score. Again, they know the broad picture, but not the details. Here are some of the things that consumers do that all but massacres their credit score.First of all, consumers should understand that lenders and creditors are constantly...more
Most consumers are aware of the current problems that some financial institutions are experiencing. This has caused some concern for large investors, those with CD investments over the maximum amount that is covered by the Federal Deposit Insurance Corporation. Currently, the maximum allowed is $100,000 per account.The simple answer to this problem is to spread your certificate of deposit money into various accounts at various institutions with each account not exceeding the limit. This is completely legal and many investors are doing just that. However, keeping money in several locations can cause bookkeeping problems. There is another way of doing this can be far easier. A somewhat new service, the Certificate of Deposit Account Registry Service, or CDARS, can do this work for you.Promontory Interfinancial Network is the company that provides this service. It has been available for over five years and nearly 1,800 banks and thrifts in all 50 states offer the service. The service allows CD depositors with balances of up to $50 million to have their entire balances insured by the FDIC.Let's look at how this works. In this example, the investor has a $1 million CD.The investor would...more
By now most American consumers have heard about the sub-prime mortgage crisis. It would be difficult not to have heard about it. What many consumers have not heard much about is the increasing belief that even homeowners with prime mortgages may be facing some issues in the near future.Of particular importance is the threat of lower home values,...more
Did you know that today more individuals are turning toward personal bankruptcy as a way of solving their financial hardships? It is true.During the period from 1998 through 2000 there was a decrease in the filings for bankruptcies but that is not how it is now. New estimates say this year nearly 1 in 70 people will file for some sort of bankruptcy...more
Do you know what to do if your credit cards or ATM cards are stolen? You might be surprised at how many people do not.All consumers should know that the Fair Credit Billing Act (FCBA) and the Electronic Fund Transfer Act (EFTA) offer procedures if your cards are lost or stolen.In general, here is what you should do:You should report the loss or theft of your credit card or ATM card to the card issuers as soon as possible. This is easy to do as most companies have toll-free numbers and 24-hour customer service set up to deal with these types of problems. It is always a good idea to follow up the phone call with a letter. Within the letter, include your account number, when you discovered that your card was missing, and the date you first reported the loss to the company.For Credit Card Loss: According to the FCBA, if you report the loss before the cards are used the card issuer cannot hold you responsible for any unauthorized charges. If the card is used before you report it missing, the most you will be responsible for in unauthorized charges is $50 per card. This is true even if your credit card is used at an ATM machine to access your credit card account.Consumers should always...more
Just like a regular savings account, a money market account is a type of savings account that is offered by banks and credit unions. The main difference is that money market accounts will usually pay higher interest, have higher minimum balance...more
Many consumers have found that putting money into CD's (certificate of deposit) accounts is a good way to earn additional interest over regular savings accounts. Just like the regular savings account that most of us are familiar with, money that you...more
Most consumers have heard of Chapter 7 bankruptcy but there is another type known as Chapter 13. This article details some of the differences between the two and how they may affect someone who has to file.There are many differences between Chapter 7...more
Most consumers realize that there is a relationship between their debt and their credit reports. The truth is there are several relationships between a consumer's debt and his or her credit reports and ultimately the credit score that is calculated...more
Credit card debt reduction services are becoming more popular as more people find themselves in financial trouble. Consumers who believe that credit card debt reduction services may be an option for them should first do some homework. Two things are...more
Most people are familiar with the word bankruptcy, but many do not know much about Chapter 7 bankruptcy. This article deals with some of the more common issues associated with this particular form of bankruptcy.First of all, Chapter 7 is the most...more