Archive for September, 2007
8 steps to great credit
Posted by: | Comments8 steps to great credit
Having a good credit score is more valuable than you might think. Here are eight simple ways to make sure you’re getting the highest score you can.
Lenders view your credit score as a measure of your financial trustworthiness. They’re more likely to lend you money and charge you a lower rate of interest if your score is good. So, it’s in your best interest to try to build the best credit rating you can. While you can’t raise your score overnight, you can improve it if you follow these steps:
1. Establish a credit history.
In order to have the best credit rating possible, it’s important to establish a history of responsible borrowing. If you currently don’t have any credit history, you may want to consider applying for a gasoline company credit card. Not only are these usually easy to obtain, but gas cards can be a great way to charge regular small purchases each month without being tempted to overspend.
2. Pay your bills on time.
Late payments are often the single biggest factor in a low credit score. When you receive your credit card statements, utility bills and other payment notices, put them in a prominent place where you won’t forget about them. Or, better yet, to ensure they’re always paid on time, arrange to have them automatically paid each month via direct debit from your bank account. If you do this, however, take care you maintain a sufficient bank balance to cover them so you don’t end up getting hit with charges for having insufficient funds.
3. Review your credit reports.
You can request a free credit report from each of the three bureaus (Experian, Equifax and TransUnion) once a year (go to www.annualcreditreport.com), or request your free credit report and score through LendingTree®. Review your files at all three bureaus, and if you find mistakes or missing information, contact the bureau to resolve the issue. Instructions for reporting errors are on each bureau’s Web site.
4. Reduce your debt.
Sure, it’s easier said than done, but try to lower your credit card balances and lines of credit a few months before applying for a mortgage or personal loan. One of the important factors included in your credit score is the difference between the current balances and the available limits on your accounts. Try to keep the balances under 30 percent of their allowable limits.
5. Make sure lenders report your credit limits.
Here’s a tip that few people know about: Some credit card issuers do not report your credit limit to the bureaus, so your account may appear to be maxed out even when it’s not. For example, if your card balance is $1,200 and your limit is $12,000, you’re at a very healthy 10 percent ratio, but if your limit is not reported, your score won’t reflect this. Correcting the problem — by asking credit card companies to report your limit — may improve your score considerably.
6. Confirm your good credit history has been reported.
When you check your credit report, you may find there’s no record of a loan you successfully paid off or a credit account that you’ve kept current. If so, ask the lender to report this positive history to the credit bureaus or send a letter to the bureaus yourself, along with copies of the statements showing you’ve paid on time.
7. Don’t apply for, or cancel, accounts you don’t need.
If your credit report shows you’ve applied for a lot of different kinds of credit in a short period of time, your credit score may drop, especially if you have a short credit history or few existing accounts. (However, multiple inquiries within 14 days for home and auto loans are counted only once.) That’s why it’s usually a bad idea to sign up for cards you’re not likely to use. If you have already opened a number of accounts, however, don’t rush to cancel them. Closing accounts, especially ones you’ve held for a long time, will reduce your available credit and may shorten your credit history, which can lead to a lower score.
8. Monitor your credit regularly.
While an annual credit check is often enough, if you’re actively trying to improve your credit it’s a good idea to track it more regularly. There are many companies that offer credit monitoring services. (For example, if you apply for your credit report and score through LendingTree, you will also receive a free trial membership in LendingTree Credit Monitoring, a service that monitors all three of your credit bureau reports daily and sends you email alerts regarding any key changes.)
28.8.2007 – Home Credit & Finance Bank (“HCFB”), rated Moody’ Ba3/NP/D-, S&P
B+/B, and one of the leading banks specializing in consumer banking in Russia, announces its
financial results for the six months ended 30th June 2007 in accordance with International Financial and Reporting Standards (IFRS).
28.8.2007 – Landmark transaction for the Russian consumer finance market sees securitization of a new asset class – credit card receivables. Home Credit & Finance Bank LLC (Moody’s Ba3/NP/D-, S&P B+/B), one
of the leading banks specializing in consumer banking in Russia, has announced the successful
closing of the first-ever asset-backed transaction for a Russian credit cards receivables portfolio (the “Securitization”).
Piggyback loans let you tap your home equity when buying
Posted by: | CommentsPiggyback loans let you tap your home equity when buying
Homebuyers can use a second mortgage or line of credit to help with a down payment, or to finance other needs and wants.
A “piggyback” loan is usually defined as any type of second loan that’s closed at the same time as your first mortgage. The piggyback may be a traditional second mortgage known as a home equity loan, a home equity line of credit or some combination of a loan and a credit line.
Piggybacks serve various purposes
Homeowners take out piggyback loans for a variety of reasons when they purchase their home or refinance their mortgage. Many buyers use piggybacks to avoid mortgage insurance that’s required with a down payment of less than 20 percent of the purchase price of the house. Others may want to repair or remodel their home, buy a vacation home or new vehicle, fund a college education or meet major medical expenses.
A home equity loan is the usual means to avoid mortgage insurance or borrow a set sum of money for a long period of time, while a home equity credit line is useful to meet variable or relatively short-term financial needs.
Loan offers predictability; line offers flexibility
A piggyback loan typically has a fixed term and interest rate, though some loans have adjustable interest rates. Fifteen-year terms are common, though five-year, 10-year and other terms may also be available.
A piggyback credit line typically has a term of 15, 25 or 30 years and a variable interest rate. Unlike a loan, a credit line usually doesn’t have a fixed balance, but rather can be drawn upon at need and paid off at will during the term. Some credit lines allow you to convert a chunk of debt into a loan with a fixed interest rate and term.
Some lenders offer very low short-term “teaser” rates on credit lines as an inducement to homeowners. If you’re considering a credit line as a piggyback loan, be sure to consider not only the teaser rate, but also your ability to repay the debt when the rate increases after the low teaser rate expires.
The interest on a piggyback loan or credit line may be deductible as home loan interest expense on your income tax return. Consult a tax advisor to find out whether that benefit is applicable to your individual situation.
Loan products can be complicated, so it’s very important to be sure you understand how your loan is structured.
Be wary of high fees on piggyback borrowing
Piggyback loans and credit lines typically are offered with very little or even no closing costs, so be wary if closing costs or fees seem excessive. Some credit lines require a minimum balance or come with an annual or per-transaction fee.
The maximum amount you’ll be able to borrow will depend on the value of your home, the balance on your first mortgage, your credit history and other factors. Home equity loans and credit lines can be cheaper than other types of debt, but you could lose your home if you’re unable to repay your debt.
Corporate Communications of Home Credit Group will be managed by M. Tomanek
Posted by: | Comments6.9.2007 – Home Credit, one of the key consumer finance players in CEE and Central Asia, is delighted to announce that Milan Tomanek (50) has been appointed as Group Communications Manager of Home Credit Group with immediate effect.