our service is updated everyday, come again
US president tells voters in Milwaukee, Wisconsin, how he plans to boost the economy by investing in roads, railway and airport runways
Video: Obama announces $50bn infrastructure plan is a post from: Bad Credit Loans
Video: Obama announces $50bn infrastructure plan is a post from: Bad Credit Loans
never miss a day, thanks for the blog
Barack Obama used Labor Day weekend to start to roll out the notions the Democrats are going to try to run on – the same weekend that more polls came predicting a Republican wipe out.
This past weekend marks the traditional start of the US fall campaign season. So if you’re a traditionalist, it stands to [...]The Democratic campaign begins | Michael Tomasky is a post from: Bad Credit Loans
our service is updated everyday, come again
As he unveils a package of new ideas, we consider what President Barack Obama can do to put his country back on course.
Also in this week’s podcast: he’s been called “the unacceptable face of banking” by government ministers. So why has Bob Diamond got the top job at Barclays?
Plus, Ha-Joon Chang joins us to explode [...]The Business: Barack Obama’s last stimulus is a post from: Bad Credit Loans
wonder what this really means
Announcing a $50bn plan to rebuild America’s road and railways, Obama knocks Republicans as party of ‘No, we can’t’
With the Democrats in Congress fearing a bloodbath at the midterm elections, Barack Obama attempted to seize the political initiative with a new plan for reviving America’s infrastructure while bashing the Republican opposition for its obstruction.
“If I [...]Obama’s $50bn bid to reignite Democratic party fortunes | Richard Adams is a post from: Bad Credit Loans
debt consolidation for bad credit
Peter Orszag, Obama’s former budget director, wrote a buzzy column (as in, it’s getting some) in the Times today in which he came out for extending the Bush tax cuts for all taxpayers, upper-bracket ones included, through 2013, and then letting them all expire (middle- and lower-brackets included).
Robert Gibbs came out today and said no, [...]Taxes and inequality (and Lady Gaga’s meat bikini) |Michael Tomasky is a post from: Bad Credit Loans
debt consolidation loans for bad credit
Q: I wonder how to refinance my home loan. I owe about $150,000 on the mortgage and $30,000 on the line of credit. My house is worth conservatively around $250,000. I am only looking at the first mortgage. I am about 6 years into the 30 year fixed rate mortgage at 5.375% and thinking about 20 year term. I earn $90,000 a year and credit score is above 730. My biggest concern is that I cosigned for nephew’s student loans. He owes close to $130,000 and has paid since April, $615 per month. Is this going to negatively affect my credit score and interest rate?
A: The fact that you are a cosigner has very little to do with the interest rates in ongoing mortgage and housing mess. And as long as the nephew is paying on time, will not do anything to your credit scores. However, it has everything to do with debt to income ratio which is the decisive factor if you are to qualify for the new mortgage. So stop worrying about would be mortgage interest rate and start worrying about your recurring monthly payments like credit cards, auto loans, child support, alimony, etc. How to go about? Just put them all on the piece of paper including that $615 student loan payment, because as a cosigner you are responsible. Then sum all the payments up and divide the resulting dollar amount by your gross monthly income. Gross means before taxes. The resulting ratio between your monthly payment amount and gross income with today lending guidelines should be under 50%, to the best knowledge.
The only way for the payment on student loans that you cosigned for not to be counted against your monthly expenses is to show 12 to 15 monthly bank statements that prove that the nephew is paying on time without you helping him. While you are still responsible for this loan as a cosigner, such a payment record would show that he can handle it himself. Here is some relevant reading,
Erasing or disputing cosigned student loan won’t work
Cosigning a student loan – a sure way to ask for troubles!
debt consolidation for bad credit
Don’t go above the credit limit on your credit cards. It may really throw your plans in disarray. But things like this one happen quite frequently, believe me. Friend of mine was prequalified for a mortgage few months. He had several rather big issues in the past but has been a law abiding citizen for the last 4 years, at least in credit terms. His scores were 688, 679 and 660 with Experian, TransUnion and Equifax respectively. Finally he found a property on short sale. His offer was accepted 4 weeks ago and he was ready to go. Once his mortgage broker reran his credit, which he had to do, the new credit scores came lower. Experian was the worst at 613 and first, the 75 point drop was impossible to explain. Nothing looked bad enough to justify such a decrease. Except that American Express account was over the limit for about 2 days by just $3 and some change.
He paid American Express account down to bring it well under the limit, but it was too late. American Express has just reported his over-the-limit account and that literally killed his credit score. After he paid it down, it took American Express 10 days to report the new account status. Not because it wanted to ruin his chances to buy a house, but because that how American Express reports. Once the account was reported current he recovered quite a bit albeit not entirely, and had to write a letter of explanation. Closing was also moved, but hopefully he will get the house. The bottom line is, no matter how little you go over the limit on credit card and for how short of a time, credit card issuer may happen to report in the most inopportune time.
Q: I have $530 outstanding with debt collection agency from my old Discover card account. They offer me to settle for one time payment of $447 or instead, I can make 6 monthly payments $104 each. What is better for my credit score?
A: Neither. When collection is paid, the account status changes to Paid Collection which really can make your credit go lower for some time. In best case, paying debt collection account no matter which way, will not change anything about credit scores. Try offering them something like $400 which is close to 75% of what you owe, for deletion of this record from your credit report. This is called Pay For Delete and you will find this debt settlement letter helpful.
thats funny
Q: Here is the problem, I have been rebuilding my credit history for the last 4 years and have 690 score with Equifax. My wife lost her job 11 months ago and has been unemployed since then. By now we have no other choice but filing for Chapter 7 bankruptcy in her name only. She has mortgage in her name only as well as approximately 18,000 in credit card debt which we can’t pay. My wife will most certainly foreclose also as we tried to short sell but got no offers. I am not on the mortgage, so my credit report should be clean from both bankruptcy and foreclosure, then once she gets a new job I can buy a house sometime in a future. Yesterday, my friend who is a loan officer at the local credit union ran my credit report and pointed out that I am listed as an authorized user on her Discover which is 90 days late, and Capital One which is 120 days late, and will be hopefully discharged in the bankruptcy. I want to remove both accounts from my credit report. My friend tells me not to worry since I am not a joint account holder but authorized user only. Still I am very worried. How can have credit bureaus to remove these accounts?
A: You should stop fretting, just like your friend explained, as an authorized user you are not legally liable to satisfy the credit card debt in the event when the principal who is your wife, unable to pay. Had you been a joint account holder for these credit cards, then you would have been very equally responsible for the balances and legally liable for the entire amount on Discover and Capital One. To have credit bureaus remove both accounts from your name, start a dispute and explain that these are not yours. They should comply, but even if they don’t, don’t worry too much. It should not affect your credit score or rating.
debt consolidation for bad credit
Joint credit score misconception is something I have been finding really hard to grasp. Bunch of people I know, some considered somewhat intelligent, think quite adamantly that once married, a couple has a joint FICO score. Last Friday finally, I had enough. I was at the wedding rehearsal dinner, have you ever heard of that one by the way? – where several young kids were talking about the importance of marrying someone with good credit score, because it is going to greatly affect their future joint FICO score. One did the talking, others nodded vigorously in support. To my shear horror, one was majoring in finance with a year to go, and the other was about to take an entry level accounting position at downtown firm. I did not say anything but I am putting it here, in the clearest way.