Avoiding bounced checks

Avoiding bounced checksBounced checks are a serious problem that can drain money from your account. Bounced checks occur when there is not enough money in your checking account to cover the amount of checks you have written. If you write a check for $51, for example, and you only have $49 in your account, your check will bounce. That is, your check will be returned to you and the person you have written the check to (let’s say a utility company) will not be able to get their money. Usually, both the bank and the business (in this case, the utility company) will contact you about the bounced check. The utility company will generally charge you hefty fees for the bad check and your bill will be unpaid, which can affect your credit score and can lead to late fees. In addition, your bank will usually charge you extra fees due to the bounced check.

It pays to avoid bounced checks at all costs. The easiest ways to avoid bad checks is to keep careful track of how much you have in your account and how much you have coming out in automatic withdrawals and checks. Keeping track ensures you always have enough in your account to cover expenses. You can also borrow money in an emergency in order to cover a check. Many banks offer overdraft protection. This protection ensures that even if you write a check for more than is in your account, the bank will cover you (as a type of loan) so that you do not get a bounced check charge.…

How big a deal is bad credit?

bad creditMany people take a pretty casual attitude about bad credit, but having a poor credit score can hurt you in many ways. A bad credit score shows that businesses and lenders find you to be a poor credit risk because you have made some mistakes in the past. Bad credit can affect many things in your life. If you want to apply for a personal loan or a refinance loan, you may be charged extra interest rates or be offered worse terms if you don’t have a strong credit history. You may have a hard time securing any loans – even bad credit personal loans – if your credit score is low enough. This means that you may not have access to cash loans when you need them or that you pay more than you have to for personal loans.

Even if you do not need a personal loan, bad credit can still harm you. Landlords sometimes look at credit scores when screening tenants. If you want to rent a great apartment, especially in a competitive rental market, you may have a hard time renting with a bad credit score. Employers also sometimes check credit scores when hiring new employees, especially if those employees will be working with money or financial information. Having a poor credit score, therefore, can cost you that great career.…

Could your online habits be hurting your chances of nabbing cash loans?

nabbing cash loansAs most of our readers probably know, lenders offering unsecured loans, cash loans, personal loans, and other forms of debt usually consider a potential borrower’s credit history when making a decision about lending money. This is why so many savvy borrowers engage in a little credit repair before applying for a loan.

Media reports today, however, suggest that even if you fix your credit, some online habits might actually be hurting your chances of securing a loan. It seems that some credit agencies and companies are going online to learn more about potential borrowers, checking social networking sites such as Facebook to see what sorts of comments people make. It is perfectly legal, since users of these sites make this information public to anyone. If you write on your Facebook page that you love to shop and run up big bills, that could hurt your chances for a loan, apparently, especially if your credit has some dings on it to begin with.

It doesn’t hurt to check out what sort of impression you make online. You never know who’s checking out your online profile – it could be a date, but it could be a lender or a potential boss.…

What to Do If You Lose Your Home

Losing your home is one of the most painful experiences homeowners can go through. Home foreclosure not only affects your credit and takes away your major asset, but it also creates many expenses – such as moving expenses and rental expenses — which may be difficult to meet when you are in a financially vulnerable position.

If you have lost your home or are about to lose your home to foreclosure, the first thing you will need to do is to create a plan. First, go over the foreclosure documents you have received and see whether there are any mistakes made. Consult an attorney if there are, since mistakes in your filed documents can give you more time to sell or refinance your home before foreclosure.

If there is no way to stop foreclosure, your immediate concern is to get back on your feet financially. It may be a good idea to speak with a non-profit group in your community to get some financial advice. You will also need to find a new place to stay. You may need to move your possessions into storage for the time being, until you find a new place. You may need to rent initially. This means you will need to find the funds for a security or damage deposit for your new home. You may be able to sell some of your furniture and possessions in order to defray moving costs. As well, consider reducing your moving costs as much as possible to keep new debts very low. Once you have settled into your new home, focus on rebuilding your emergency fund and increasing your income.…

What is equity and why is it important?

equity importantEquity refers to the value of a property – usually a house – minus any loans or liens against that property. For example, if you own a home that is worth $200 000 and you have a $100 000 mortgage on it (and no other debts using the home as collateral) you have $100 000 in equity in the home.

Equity is important for a number of reasons. First, it is considered a type of asset. That is, if you need to, you can borrow against the equity in your home. Homeowners interested in debt consolidation loans, for example, often use the equity in their homes to secure the consolidation loan. As well, lenders will consider your equity in a property when offering you a loan. If you have no equity in your home or property, you are less likely to get a great interest rate on a personal loan or personal loan. Therefore, working on paying down your mortgage is important for protecting your financial future.…

What is mortgage fraud?

Between 2021 and 2023, reports of mortgage fraud increased by 37%, according to the FBI. Experts believe that this spike in fraud is the result of an economic downturn. Mortgage fraud is, quite simply, and misrepresentation or dishonesty designed to trick homeowners, mortgage holders, or lenders. It can take many forms.

mortgage fraudInvolved fraud schemes involving dishonest lenders and investors. In this type of mortgage fraud, investors purchase a low-cost property, complete some poor quality repairs and sell the property back and forth among themselves at an inflated price, making the property seem more valuable than it is. These fraudulent investors may also have mortgage brokers and assessors on the scheme. When the investors find an unsuspecting buyer, they sell the property at an inflated price and the buyer is encouraged to use the dishonest lender as well. The buyer gets a property worth far less than the asking price and usually a mortgage with an inflated interest rate as well.

Lying on a mortgage application. Whether you are applying for a fixed rate or adjustable rate mortgage, you need to be honest about your income, assets, and other financial details. Trying to be dishonest and getting a mortgage under false pretenses usually counts as fraud.

Identity theft. In this type of mortgage fraud, someone posing as a homeowner takes out a mortgage on someone else’s property. The homeowner is left with a hefty mortgage they need to pay off as well as a lowered credit rating.…