|
|
|
Car Loans For People With Bad Credit
Car loans for people with bad credit are readily available online. After completing an online car loan application, you can expect an approval within a few minutes. By the next day, you can have check in hand to purchase your vehicle. Car Loans...
Credit Card Debt after Divorce
It is true that marriages are made in heaven. But everything
falls flat on their butt once a marriage hits the rocks. Every
bit of reconciliation fails and divorce seems to be the only way
out. If everything - both financial and other aspects -...
How Creditors Measure Your Credit Rating
Creditors will measure your credit rating based on the following three main things.
Capacity
Collateral
Character
The three "C's" show creditors your:
"Capacity" or income to pay the debt
"Collateral" or assets...
The True cost of Credit
The current house price boom has perhaps passed its peak as I write this, but that doesn't stop the mortgage companies from offering yet more new and tempting products that look like good deals for a consumer. But be warned - The standard mortgage,...
What is Credit Scoring?
Have you ever wondered what is credit scoring? Credit scoring is a system creditors use to help determine whether or not to give you credit. How does a creditor decide whether or not to grant you credit? Creditors use credit scoring systems to...
|
|
| |
|
|
|
|
|
|
Credit card minimums not doubling, but might still hurt
Executives at Debt Shield, Inc., a Maryland-based debt
settlement firm, said that the increased minimum monthly
payments on credit card balances will most likely not double, as
it is widely reported, but that the increase might push
financially struggling cardholders into bankruptcy or bankruptcy
alternatives, like debt settlement.
"While credit industry experts and the media claim that credit
card companies are doubling their minimum monthly payments from
2% of the outstanding balance to 4%, the actual minimum payment
increase is more complicated and less drastic for most
cardholders," explains Mark Baylis, President of Debt Shield.
"The new rules require credit card banks to set their minimum
payments to cover all interest and fees plus 1% of the
outstanding balance, which will result in significant increases
for high-interest accounts."
Baylis said that a cardholder with $10,000 on a credit card at
18% Annual Percentage Rate (1.5% monthly) pays $200 under the 2%
minimum requirement. Out of that $200 payment, $150 (1.5%) goes
towards interest and only $50 (0.5%) goes towards the
outstanding balance. Under the new rule, the minimum payment
will increase so that the amount applied to the outstanding
balance in this example is at least $100 (1%), so the minimum
monthly payment must increase by $50 (0.5%) to $250 (2.5%).
The average APR is currently just under 14% (1.17% monthly),
but credit card companies increase the APR to 27% or higher if
the cardholder makes one late payment. This means that the
reality of the new rule will punish low- to medium-income
families struggling with credit card
debt more than high-income
families who are able to avoid paying late. Baylis said that
even a small increase can have drastic consequences for families
struggling to make the existing payments and manage inflation
combined with stagnating income.
The MMP on a credit card debt with the above-average 18% APR
will increase by $50 while the same $10,000 debt with a 27%
penalty APR will increase by $75. Also, the 27% APR charges $75
more in monthly interest than the 18% APR. Baylis said that this
clearly demonstrates the financially destructive power of high
interest rates.
"The increased minimums will be good in the long term because
it should encourage less debt," Baylis continued. "But if the
credit card companies want to help consumers, they need to stop
punishing cardholders with outrageously high interest rates."
About Debt Shield, Inc.
Debt Shield, Inc., is a debt settlement company dedicated to
helping consumers resolve their unsecured debt through mutually
agreeable and discounted lump sum settlements in consideration
of legitimate financial hardships. By helping consumers avoid
bankruptcy, Debt Shield provides a service for both debtors and
creditors. For more information about Debt Shield, call
1-888-397-7546 or visit the website at www.debtshield.com.
About the author:
John Janney is president of the National Financial Awareness
Network, Inc., a financial literacy company based in Columbia,
Maryland, that offers educational products and services to debt
relief agencies, their clients and the general public.
|
|
|
|
|
| Credit Reports - Credit Cards - Car Loans - Home Loans - Credit.com |
| Credit.com offers a variety of credit related products and services including credit reports and credit scores, credit cards, car loans, home loan and ... |
| www.credit.com |
|
| Equifax Personal Solutions: Credit Reports, Credit Scores ... |
| National consumer credit reporting company that offers credit reports, FICO(R) credit scores and identity theft protection products to consumers and small ... |
| www.equifax.com |
|
| The FTC's web site on Credit |
| Credit is much more than a piece of plastic, and the resources on this site can help you become a more savvy consumer. You’ll also find compliance ... |
| www.ftc.gov |
|
| Federal Trade Commission - Consumer Credit Center |
| Features an assortment of helpful articles related to credit issues. |
| www.ftc.gov |
|
| AnnualCreditReport |
| Site set up by the big three credit reporting agencies in the United States, to furnish free annual credit reports, as required by federal law. |
| www.annualcreditreport.com |
|
| Springboard - Non-Profit Consumer Credit Management |
| Our mission is simple: To offer education on the wise use of credit. ... SPRINGBOARD has been approved to provide credit counseling services and issue ... |
| www.credit.org |
|
| myFICO - FICO Credit Scores, Online Credit Reports and Identity ... |
| myFICO.com: Get your Free credit report and Free credit score with a 30-day trial of Score Watch. All three FICO Scores and Credit Reports Available now ... |
| www.myfico.com |
|
| Credit Suisse Global |
| Credit Suisse Group is an international financial services group. - Shares part of SMI. |
| www.credit-suisse.com |
|
| Experian: Free Credit Report and Credit Score, Credit Check ... |
| Credit referencing and consumer targeting for the USA and other countries. |
| www.experian.com |
|
| National Credit Union Administration - Home Page |
| An independent federal agency that supervises and insures 7152 federal credit unions and insures 4240 state-chartered credit unions. |
| www.ncua.gov |
|
| Credit - Wikipedia, the free encyclopedia |
| Debits and Credits, a type of bookkeeping entry; Credit (creative arts), acknowledging the ideas or ... Retrieved from "http://en.wikipedia.org/wiki/Credit" ... |
| en.wikipedia.org |
|
| Credit (finance) - Wikipedia, the free encyclopedia |
| Any movement of financial capital is normally quite dependent on credit, ... Sometimes if a person has financial instability or difficulty, credit is not ... |
| en.wikipedia.org |
|
| The National Foundation for Credit Counseling |
| DebtAdvice.org is a service provided by the Members of the National Foundation for Credit Counseling (NFCC), most of them known as Consumer Credit ... |
| www.nfcc.org |
|
| FreeCreditReport.com | Free Credit Report and Credit Score Online ... |
| FreeCreditReport.com: Free credit reports and credit scores from Experian. Get your free credit report and credit score now. It's free, fast, and easy! |
| www.freecreditreport.com |
|
| Compare credit cards | apply for a credit card | 0% balance ... |
| Compare over 300 credit cards, including 0% offers and balance transfers, and make a credit card application online... |
| www.moneysupermarket.com |
|
| Ford Credit - Auto financing for Ford, Lincoln and Mercury cars ... |
| Ford Credit provides auto financing to finance a lease or purchase a car or truck through Ford, Lincoln or Mercury dealerships. |
| www.fordcredit.com |
|
| The Credit Card Prank |
| In my lifetime, I have made nearly 15000 credit card transactions. ... Credit card signatures are a useless mechanism designed to make you feel safe, ... |
| www.zug.com |
|
| Credit magazine, corporate bonds, derivatives, structured credit ... |
| Credit magazine provides information on the international credit markets for credit investors, issuers and market professionals. |
| www.creditmag.com |
|
| CUNA: The Credit Union National Association |
| News and resource directory about credit unions. |
| www.cuna.org |
|
| Credit/Debt Management - Tools and Advice for Managing Credit and Debt |
| Drowning in debt? Trying to improve your credit score? This is the place for you. Get real world information and tips, as well as the legal low down, ... |
| credit.about.com |
|
|