Credit - Common Questions

Is it necessary to read the fine print in the credit card agreement?

Of course it is! Not everyone reads the fine print, but everyone should. The small print looks complicated and bothersome to slog through and that is why most people tend to disregard it. Often there is information contained in that tiny print that might save you money. There might be instructions regarding hidden fees, or fees you might be charged should you go over your spending limit. You might also find information regarding rate increases after a certain period of time. "I didn't know" is not a valid excuse no matter how much you mean it.

How important is good credit when it comes to getting a job?

If you had asked that question twenty years ago you probably would have gotten laughed at. Today, more and more companies are using credit checks as a standard part of the new employee hiring process. A prospective employer cannot refuse an application because the applicant suffered a bankruptcy; however there are other things such as foreclosures and collection actions that might be used against you. While the background check still reigns first and foremost in the hiring process, the credit check is gaining ground in popularity.

My credit was fine a week ago, now it's not - what happened?

There are a few things that can cause your credit to take a dive without you knowing it. The first is an inquiry. In this case a credit card company, utility company or mortgage company might request a look at your credit information. You might have done some work to better your rating in the last couple of months; however it takes a few more months for that information to show up. Another more obvious problem might be the failure to pay your bills on time. And lastly charge offs might be another reason for receiving bad credit. A charge off is when you didn't pay a bill, forgot to pay a bill, and it has become obvious to a company that you are never going to pay the bill. The company will write off your incompetence as a loss on their books for their taxes.

Are there any other options available when purchasing a new home?

Yes, you can go directly to the homeowner and see if they are willing to sell the house to you under a selling finance agreement. This provides a contract wherein you make payments directly to the actual seller instead of making payments to a bank. Another option would be lease-to-own. When you do take this kind of option you will have to do some homework ahead of time and figure out how much rent is going for a down payment, and after a certain period of time, how much credit you are going to end up with.

The Credit Repair Kit A bad credit record can make it tough to get a loan or adequate insurance, find a good job, or rent an apartment. Yet, nearly half of all credit records contain serious errors. The new edition of "The Credit Repair Kit" provides consumers with all the information they need to order a copy of their credit record, understand what their records say about them, and deal with any problems they may find in those records. Nationally known bankruptcy attorney John Ventura also educates readers about their legal rights under the federal "Fair Credit Reporting Act." Among other things, "The Credit Repair Kit" tells readers how to: Fight back if a credit bureau will not correct an error in a credit record, including how to sue a credit bureau or creditor. Rebuild credit after financial difficulties. Avoid becoming the victim of identity theft and credit-rebuilding scams. Interpret a credit score. With identity theft on the rise, "The Credit Repair Kit" also advises consumers about the steps they should take to preserve the privacy of their personal and financial information and what to do if their identity is stolen. With practical tips, sample credit reports, checklists, and information about helpful Web sites and organizations, Ventura provides readers with a first-aid kit for credit record problems.

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Please note that the information contained on this website is for information purposes only. We strongly suggest you seek professional advice from qualified and competent financial advisors, before making any financial decisions based on the information provided on this website. See our disclaimer for full details.

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