The term credit can mean many things. For most people, it is the ability to borrow today and pay later. The idea of “credit-worthiness” defines our personal finances, and reaches out to all parts of our financial lives. Credit can be an accounting term. You can talk about credit cards, your credit history, your credit score, or the three credits you got in college for taking Bowling. This page is the credit nerve center of ThinkGlink.com. From this page you can learn more about what credit means and how having good, bad, or mediocre credit affects your personal finances.
3 Tips to Get a Lower interest Rate
Want a lower interest rate, late payment fee forgiveness or a higher credit limit? Just ask for it. Nearly nine out of 10 credit cardholders who asked their credit card companies to waive a late payment fee were successful, and about two-thirds who asked for a lower interest rate were approved, according to CreditCards.com. “It’s [...]
How FICO 9 Could Improve Your Credit Score (If Lenders Actually Use It)
Recently, FICO introduced a new scoring model that could potentially make a big impact on housing—if mortgage lenders ever use it. The FICO 9 score would limit the impact of paid medical collections on a consumer’s credit score, potentially lifting scores by 25 points on average, the company says. That’s good news to anyone who’s [...]
Should I Reaffirm My Mortgage Debt After Bankruptcy?
If you’ve found yourself in financial difficulty, you may be considering bankruptcy, which allows you to settle with your creditors in court. In a bankruptcy, you may be able reorganize your debts to make your payments more manageable—or even eliminate your debts completely. While a bankruptcy can help you get rid of your debt in [...]
Why Aren’t My Mortgage Payments Being Reported After Bankruptcy?
Bankruptcy filings increased nearly 30 percent at the height of the Great Recession, and many Americans are still recovering. Fortunately, some of my listeners are rebuilding their lives and moving on from bankruptcy. Others wonder why their mortgage payments aren't being reported after bankruptcy. On last week’s radio show, one listener said her bank told her [...]
Check Your Credit Score Before Shopping for a Mortgage
It’s selling season and buyers are excited to take advantage of the incredible low interest rates out there. But before you start shopping for a mortgage, you should check your credit score. You need to know where your credit stands to be able to work towards the house of your dreams. FICO credit scores start at 300 [...]
Credit Monitoring FAQs: I Received an Alert, What Should I Do?
If you’ve purchased a credit monitoring product to help you stay on top of the information in your credit file, you may at some point receive an alert. When the alert is about a change you’ve recently initiated—a new credit card or mortgage, for example—it may not be a surprise. But when you receive an [...]
In Debt? Consider a Debt Management Plan
The economy is continuing to improve, and many people who saved diligently during the recession to pay off debt are now feeling comfortable enough to borrow again for homes, cars, and other big purchases. As a result, U.S. household debt is climbing at its fastest pace in five years. Consumer household debt rose 1.1 percent [...]
How to Pay Less Tax on Forgiven or Cancelled Mortgage Debt
The IRS will collect taxes on forgiven or cancelled mortgage debt but distressed homeowners may pay less than the full amount if they file correctly. When the bank forgives your mortgage debt, sells your home in a short sale or repossesses it with a deed in lieu of foreclosure, you no longer owe the mortgage [...]
Why Your Credit Score Matters During Retirement
A lot of nasty financial warnings went out during the Great Recession, including one that baby boomers wished they didn’t have to hear: Your credit score still matters. Boomers are plowing through the retirement gates at the rate of 10,000 a day, but the gate opened at about the same time that the bottom fell [...]
Does My Credit Score Affect My Insurance Rates?
With a solid credit score, you are able to borrow money at the most competitive interest rates. But that’s not all—creditworthy behavior could also help you save hundreds of dollars on your insurance policies annually. How does my credit affect my insurance? Most auto and homeowners insurance companies use a type of credit score—known as [...]