Monthly Archives: November 2016
Are you being held back on refinancing a mortgage due to a poor credit score? What if you want to finance a car? Have you ever applied for credit and been turned down? Are you asking yourself “how do I fix my credit”?
There are some steps you can take and people that will help you Don’t give up on repairing your credit, until you have looked into all the available choices you have.
Your credit score is a numerical rating of your use of credit for the last seven to ten years. Keep an eye on a number of categories which might harm your credit score. Your credit score will be reduced if your cards are close to their combined credit limits. Each time you try to start a fresh account, your credit rating will fall. Even, making inquires about your credit scores may reduce it.
Factors that can lower your credit score include: declaring bankruptcy and having multiple bills in collection. The road to improving one’s credit is to first take a look at your credit report. To fix my credit, you’ll need to get a copy of your credit report. Make sure there’s nothing fishy about it. People write up credit reports, and they will make errors every so otfen. It is important to make sure everything is correct and anything not correct is removed.
Then, do the most difficult part of this – wait. Pay each of your current credit accounts on time, and pay more than the minimum if possible. Each time you make a payment on time, your credit report improves incrementally. It’s important to get ALL your payments on time; this is what makes debt consolidation loans such a good deal when doing credit repair. When there’s only one payment to make, it’s easier to keep it going on time.
Wait at least half a year before applying for credit and then try not to go crazy. Making regular payments when they are due is key. This will also teach you a bit of fiscal discipline, which is the key to using credit Keeping track of your financial dealings. responsibly.
What period of time is needed to repair credit problems? In my case, it took about 12 months of regular payments for my credit score to rise again to the point where asking for a new car loan wasn’t a painful shock. I set up a separate bank account and set it to automatically pay my bills electronically, and then made sure that the money for those bills was set aside at the beginning of each month Interest was earned via this account which is somewhat helpful.. About once every three months, I’d go in and make double payments, which demonstrates intent to pay, and helps run the balances down faster.
One thing I learned about credit repair was that having a credit account that never gets used doesn’t help your score; this surprised me. It initially counts as a negative (you’re putting an account out), but until you make a regular history of payments, it doesn’t help you.
It is possible to repair your credit provided you are smart about your time and money.
If you’re in a relationship, the idea of legally determining who should get what if that relationship was to break down is not a particularly romantic prospect. However in today’s world, it’s a reality that if a relationship does end, the division of assets and property can be messy and difficult, and a predetermined arrangement protects both parties from the stress of splitting assets after the fact.
Binding financial agreements (BFA) or prenuptial agreements as they are commonly known as are not, however, only available to couples getting married. Here’s a rundown of who is eligible for a BFA.FA.
-De facto couples. Today, the law recognises a whole variety of relationships, including de facto relationships involving two people who are not legally married and are not related by family but who live together in a relationship as a couple on a genuine domestic basis. Understanding your legal rights if you are in a de facto relationship is important, because partners in a de facto relationship now enjoy similar legal rights to married couples. De facto couples can therefore draw up BFA’s either before, during or after they start living in a defacto relationship that determines the financial agreement under which the relationship is entered and how assets are to be divided if and when the relationship ends. If you’re looking for a de facto lawyer, Sydney has a number of experienced lawyers on offer.
-Engaged to be married couples. The most common time for a BFA to be drawn up is when two people are planning to enter into a marriage. Common reasons for couples to have a BFA are if one partner is wealthy prior to entering into the marriage; there is a need to provide for children from a previous relationship; or if either or both parties simply don’t want to end up in court.
-Married couples. You can also create a BFA during a marriage that concerns a couple’s separate and shared assets.
-Divorced couples. If a marriage has been dissolved, a BFA can still be drawn up that divvies up the assets without the couple having to go to court.
Before a BFA is binding, each party must obtain independent legal advice from a legal practitioner who is required to also provide a statement confirming that independent legal advice was provided before the BFA was signed.
BFAs, and advice about them, are best prepared by qualified, specialist family lawyers. Sydney has an experienced pool of family law firms that can help those deciding on whether or not to get a BFA make the right decision for them.
There are many types of mortgages and home loans, and considering that how you finance your home is one of the most important decisions you will make, it is vital that you know and understand your options. This article should not replace discussing things with a financial advisor before making a decision, but it does provide an overview of the types of mortgage that are available.
The Rate and Term Refinance is the most common type of mortgage refinance. This category usually refers to getting a fixed rate mortgage that is a better rate and possibly a different length (term) than your current one. Rate and term refinances are best for people who can reduce their rate on an existing fixed rate mortgage, or can afford a shorter term. In some cases, however, rate and term refinancing is used to actually increase the term for those who desire a lower payment.
A Cash-Out Refinance is done by refinancing for a higher amount than you owe, either after you’ve paid a significant portion of your home down, or after your home appreciates in value. Cash out refinancing is good for those who have important investments to make, such as in their children’s education, an addition to their home, or the purchase of an investment. Beware that a cash-out refi could weaken your rate in a future refinance.
Interest-only mortgages used to be popular but have fallen out of favor recently. Interest only mortgages allow you to get the lowest payment possible, but they leave you with less equity in your home (you have not paid any principle). These types of refinance may be best for those who are confident in the appreciation potential of their home, and those whose financial situation is uneven (because you can take control and pay principal, but only when and if you can afford to).
Part and part mortgages are not as popular in the US as they are in the UK. These loans are a combination of interest-only and “regular” mortgages. You pay interest only for a time, and then change to a more traditional mortgage where principle is paid as well. These mortgages are popular with people who are just starting out in their careers and anticipate being able to afford a higher payment in the future.
Two step mortgages are not well known, but offer a low rate for a fixed period of time, and then a higher fixed rate after that. Two step mortgages are also popular with younger buyers just starting their careers. They are also often a good choice for people who know they are going to move, or anticipate refinancing into a new mortgage before the higher rate kicks in.
Assumable mortgages can be any of the above, but contain a powerful option: If you sell your home, the buyer can take over your mortgage intact, with the exact rate and term. Assumables are a great option if you have a very low rate and plan to sell your home. This can actually increase the resale value and attractiveness of your home to a buyer, particularly in times when mortgage rates have risen.
Home equity loans are usually secondary to any existing mortgage. You can often get a loan for a portion of the difference between your home’s value and the amount you owe on your mortgage. The rates on home equity loans are often fixed, and are most often higher than prevailing mortgage rates.
Home equity lines of credit are also taken out using your equity in your home as collateral. However, home equity lines of credit have variable (though often very low) rates. Home equity loans allow for flexibility – you can borrow as much or as little as you want on the amount you have been approved for.