What is all the fuss about paying cash for everything? Isn’t that a good thing? If you pay cash for everything doesn’t that mean you don’t owe anybody? Quite contrary to popular belief this actually hurts you. Let’s assume you pay cash for everything and all the sudden need a loan, it will be hard to get a loan with no credit. You will have not any credit scores generated with the credit bureaus with no credit being extending to you. I have heard quite often that I pay cash for everything because credit cards scare me. But let’s face it, we are all adults and can do anything we put our mind to. In our current society banks now use a automated software created by My FICO that determines your credit score and risk. If you have never borrowed money or applied for credit this software has not generated any credit history or credit scores for you. This is exactly what the banks currently look for.Applying for CreditLet’s assume you decide to go and apply for credit, only to find you are getting denied because you don’t have any credit. There is a solution to this that is quite […]
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It’s time that you stop thinking identity theft can’t happen to you. Consider the following statistics:Every minute there are at least 19 people that have their identity stolen. This translates into more then 10 million people a year!There are over 7 million households that had to deal with the devastation of identity theft in the year 2004… with identity theft on the rise by more then 80% today can you honestly believe you are safe?The FBI currently has more then 2000 open cases of identity theft right now!The worst part, your kids aren’t even safe. There are over 400,000 cases of child identity theft each year and that number is on the rise.The bottom line here is that it is more likely that your identity will be stolen then it won’t unless you take the precautions to prevent this crime from happening to you. Every time you give out personal information over the internet, every time you hand the waiter or waitress your credit card and they walk off with it and every piece of mail you throw away without shredding that contains any personal information about you or your family members you are increasing the likelihood of your identity […]
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Do you want your credit score to plummet, go ahead and co-sign for someone. I personally believe this is a huge problem. With your credit score and credit report being the roadmap to financial health, the question is can you really afford to co-sign for friends and family. Over the years I have seen more problems with this issue. Here is how a co-signer can affect your personal credit.Late PaymentsIf you co-sign for a family member your credit report could be at risk. If for some reason the family member is late on an obligation you co-signed for your credit score just dropped about 100 points. Most people don’t thing about this, but it happens all the time. Anytime someone is late on a obligation that reports to all 3 credit bureaus, that bad mark will be on there for 7 years. It’s not worth it. If you have to co-sign for someone make sure you are not getting ready to make a big purchase, because it could affect your purchasing power as well. Some banks like to see a payment history in good standing usually around 12 months on co-signed obligations. They also typically like to see proof that […]
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