Stock Market Madness
Stock Market Madness – that’s about all you can say looking back over the last week. There has never been this level of volatility in the stock market. We’ve never seen 400+ swings (positive and negative) on subsequent days, or even one day during trading hours.
It was breathtaking to watch the panic set in. And, that’s what it was all about – panic. Panic that European banks are in worse shape than previously thought. Panic that those same banks would stop interbank lending, inciting a lending freeze. Was France going to lose its AAA rating? Hard to imagine, but in the wake of the US losing its AAA rating (thank you Standard & Poors), easier than two weeks ago.
The good news is that we wound up only losing about 175 points for the week.
eCredable – The Place To Go For Alternative Credit
Steve Ely, CEO of eCredable, came on the show today to talk about alternative credit and what happens when you don’t have any credit or a thin credit file. About 54 million Americans don’t have any credit, and have no way to prove credit-worthiness. If any of these folks want to buy a house or a car, they’ll have a really hard time – and they won’t get to access today’s super-low interest rates.
I asked Steve who these folks are. He says they’re mostly 18 to 25 years old and perhaps have had just their parents co-sign a loan or a credit card for them. But they’re not really building credit in their own names.
That’s where eCredable can help. eCredable looks at your rent payments, auto insurance premium payments, utility payments and other sorts of payments you make regularly. They use this information to get an alternative score called the AMP Score (for “all my payments”). The score is A to F (because that’s really easy to understand).
Full disclosure: I sit on an advisory board for eCredable and I have written or produced most of the educational content on the site. I think it’s an important resource and step for folks who don’t have credit or who have a thin file, and I’m not alone. Dave Ramsey also thinks it is a great idea – and he endorsed eCredable this week!
Wells Fargo Announces Chicago (August 17-18) and Atlanta (September 8-9) Home Preservation Workshops
Wells Fargo has invited 13,000 customers to the two-day workshop in Chicago, scheduled for August 17-18, from 9 a.m. – 7 p.m. each day, at the United Center, Gate 6 located at 1901 West Madison Street in Chicago. Walk-ins are welcome, but registration is strongly recommended in order to guarantee the ability to meet with a representative. Sign up by Aug. 15 at www.wfhmevents.com/leadingthewayhome. For more information call 1-800-405-8067.
In Atlanta, Wells Fargo customers will want to go the Georgia World Congress Center on September 8-9, Exhibit Hall A2, from 9am – 7pm. BUT YOU NEED TO SIGN UP IN ADVANCE. Sign up by September 5 at www.wfhmevents.com/leadingthewayhome. For more information call 1-800-405-8067.
P2P Lending Might Help You Finance That Commercial Property Purchase
Peer-to-peer lending (also known as P2P) is a way for you to borrow a small amount of money from a large number of people, even if the bank isn’t that interested. With Prosper.com, you can borrow up to $25,000. You can also borrow a similar amount of money (most entrepreneurs borrow less) at LendingClub.com.
Investors bid on your business and you may pay interest rates as high as 9 to 15 percent. It just depends on what kind of credit risk you appear to be.
If You’re Having Trouble Making Your Mortgage Payments, Call 888-995-1000
Always talk to a HUD-certified housing counselor to get help with loan modifications.