Payday loans are typically things that most people try to stay away from. However, there can be times when a payday loan is something that you can turn to. In your business you may be able to get a payday loan to help fund a new project while you wait for your pay check from your “day job” to clear.

However, and I cannot emphasize this enough, you have to be responsible with your money.  You have to be especially careful when it comes to borrowing money from payday lenders or any lenders. You also need to make sure that you watch the APR on the amount that you lend. There is a lot to think about when going to a lender rather than using your own money.

If you do plan on going to a payday lender you really want to try to go with a company that is based in the United States (or whatever country that you are located in). This is always the more secure choice than going to offshore companies. Sometimes you also need emergency money and an online company with a quick 24 hour turnaround is usually a better choice than having to go to a business in your town. It can also be kind of embarrassing to go to a public establishment to get a payday loan. Going online to get the money is a bit more discreet.

The PayDay One company offers many benefits to potential borrowers. With a company like this one, you can bank on the fact that the company is a trusted, domestic company. It offers better rates than most companies and someone who needs the money can fill out an application 24 hours a day whenever they may need money. If you have a business and may not have the best credit score (and have the ability to pay back loans quickly) then this may be the right lender for you.

Do you support an employer’s decision to check the credit score of someone applying for a job?

Question:

It is becoming more and more common for an employer to check the credit score of a potential employee. Do you support this practice?

Answer:

Absolutely not. I have several articles I have written on this very subject and I make my feelings toward the practice pretty clear. If the employer gave the candidate a chance to explain blemishes on their credit report, then I would be a bit less abrasive toward the practice, but otherwise, this is just ridiculous. If an employer is looking for a reason not to hire someone, I’d like to see them come up with a better reason than the candidate’s credit score.

Foreclosures may be on the decline (finally) in our country, but there are a lot of families out there who may be behind on payments and considering foreclosure as their last option. Like bankruptcy, foreclosure will stay with you and haunt your credit score for seven years.

When your home is foreclosed on, your credit score will drop somewhere between 200 and 300 points. Of course, it can’t drop your score any lower than a 340 (the lowest one can get on his or her credit report), but if you have a good score of 700, you could find yourself with a 400 (which is pretty awful).

Your credit score is more than about just being able to get loans. Your credit score is also the key to lower rates on things like insurance and your future job prospects.

If you do go into foreclosure, you want to make sure that any other credit obligations that you currently have stay up to date and paid. If you’re in good standing with your other debt obligations, then the foreclosure looks like a single item and you can start to rebuild your credit score after just a couple of years.

It is so important to make sure that you know all the implications of going into foreclosure. It is one of the things that should be well thought out instead of made in a hasty decision based on panic. There are also ways to avoid foreclosure if you find yourself looking down that road.

You could attempt to negotiate with your lender. After all, most lenders don’t want to foreclose on your home. In a market that is overflowing with houses for sale, the last thing the bank wants is another foreclosure. If you can give your lender a time frame to catch up on payments, they may actually be willing to work with you.

Sometimes you and your lender can reach a forbearance agreement. This agreement can take effect when you have come into a temporary hardship and the lender agrees to lower your payments until you can get back on your feet. Sometimes the lender will even suspend the payments for a limited amount of time.

As part of talking with your lender, another conclusion you may come to is some sort of loan modification. The lender may be able to lower the payments or, once you are able to pay the full price, start incorporating any late payments into the monthly payment. This would keep you from paying a full mortgage payment as well as any delinquent payments on top every month.

So you’re trying to take out a loan, get a credit card with a reasonable APR or trying to buy something, anything on credit, but your credit score is too low for your liking? Well, the first place to start when trying to rebuild that score is to find out what exactly makes up your credit score.

35% of your credit score is from paying your bills on time. To help improve this part of your score, start marking due dates on your calendar. This is the single largest section of your credit score. Setting up automatic bill payment is also another way to ensure that your bills are paid on time. This also keeps you from getting interest rate hikes on credit cards and loans. Someone who pays their bills on time, every time, has an average credit score of 706. Someone who pays 99% of the time on time’s average score is 658.

30% of your credit score is how much you owe. You need to make sure that you keep your balances from equaling up to 30% of your total credit line. Your credit score is partly based on the credit utilization ratio. If a credit card company ends up reducing your limit, what you owe actually becomes a larger percentage of your credit line. So, if this happens try to get in touch with your creditor and get the limit reversed to avoid a negative mark on your credit score.

15% of your credit score is the length of your credit history. In this case, someone who has had a credit history for 20 years is going to obviously be doing better than one who just graduated college. A trick to utilizing this 15% is to keep the first credit card you ever open, open. Use it a couple of times a year and pay it off.

10% of your credit score is credit expansion. Here’s a problem, when you apply for too much credit your credit score can be harmed, however having new credit accounts can also help your credit score. Open new accounts over time rather than trying all at once. This will help your credit score in the long run as long as you’re paying your bills on time.

The last 10% of your credit score is credit diversity. If you have all your credit in cards then you’re credit isn’t diverse. However, if you have a variety of credit cards, mortgage, car loans and pay the bills on time while keeping the accounts active, then you’re diversified in this aspect of your credit. The key is to keep the accounts active because not using the accounts won’t help your credit at all.

Are you any more likely to buy a Hyundai with the Price Assurance policy?

Question:

Recently, Hyundai has been advertising their “price assurance” policy which states that if you lose your job you can return the car without any negative effect on your credit score. Now, they are even offering to “pay” you monthly for six months.

With these new measures in place, are you any more likely to buy a Hyundai?

Answer:

I am more inclined to look into a Hyundai car but wouldn’t necessarily say that I would choose it over Honda or Toyota.

However, for the price, Hyundai’s (in my opinion) are great cars. You are definitely getting more for your money with that company than many other companies.

Debt Management for Everyone

When it comes to debt management it is more about your actual ability to pay the debt than the amount of debt you hold. There are debt management plans for those in any debt tier.

What is a debt management plan?

A debt management plan is an agreement with a creditor to consolidate and possibly lower monthly payments to get a debt paid down. The amount of the payment to the creditor is based on how much the debtor can afford to pay monthly.

Debt management plans are often created by companies that specialize in the field because it can be time consuming for an individual to come up with the plan on their own and actually be able to convince a creditor to consolidate payments.

Consolidating and reducing payments does mean that the debtor will be paying the debt off for a longer amount of time, however, it also means that the debtor will be able to pay the debt in full and hopefully escape any negative impact on their credit score associated with defaulting on any unsecured debts.

If you’re considering a debt management plan, you shouldn’t worry about whether you have too much or too little debt because the amount of debt you have doesn’t have as much to do with a debt management plan as you actual ability to repay the debts.

Austin Tighe, co-lead counsel for the NAACP, told the Associated Press that black home buyers have been 3 and a half times more likely to receive a subprime loan that white borrowers.

The NAACP is also suing at least a dozen other subprime lenders.

I believe in the subprime debacle, a lot of people were messed over, white, black, green, etc… it hink that everyone is looking for someone to blame.

A class action law suit is a greedy way to place blame. If they do win the case, those who were truely victimized would recieve little to nothing as compensation. However, the lawyers woudl reap the benefits (and most of the cash).

Before it got the bailout money, GMAC was unable to offer low interest rates (or zero percent like its rivals) because it just didn’t have the funds available. It said it will begin offering auto loans to those with a credit score of 620, as opposed to a minimum of 700 which was imposed two months ago.

Well, as long as you are being responsible with your spending and paying off the balance, not just the insane interest rates, credit cards offer several benefits.

First, it helps you build a credit history and improve your credit score. Both of those things are important. Poor credit can make your insurance go up (auto and home owner’s) and can even keep you from getting a job. Employers are looking at credit scores now and having a low score could keep you from getting a job or even a promotion.

Second, credit cards offer a lot more protection than a large wad of cash. If your wallet is stolen, all you have to do is call a number and go through a process and all of the money is restored. If you do a lot of online shopping, they are necessary, not only for the ability to purchase items online, but also for the protection they offer.

Also, some credit cards offer rewards that you would not otherwise get. I don’t spend a lot of money on my credit card, but I have built up enough rewards to get a CD or something, but it is a CD I would otherwise not have.