YouTube is a great site for the open minded. Recently, I ran into a few videos by a Certified Public Account (CPA) by the name of Stacy Johnson. Mr. Johnson’s videos are a great resource for educating people on credit issues. You can visit his page by clicking here. Here is a great video of his that I found proclaiming “The World’s Worst Credit Card”. For all of you that think your credit cards are a ripoff this is a must see video.
The TRUTH is there’s a fine line between what is usury and what is actually fair. There are plenty of cards out there like this taking advantage of people that are already in a bad situation. I definitely recommend a secured credit card but only if you really are serious about fixing your credit. Remember, if the only sales pitch that a card offers is “Reports to all 4 Credit Bureau”, I suggest ripping up the offer fast.
Loan approvals are generally a decision based on credit score which in turn is based on your credit history. It’s obvious to say that a bankruptcy ruins your credit history, but it does not ruin it beyond recovery. The main issue is that bankruptcy not only leaves a negative stain on your credit report but also reduces your income and those assets that could assure a loan as a guarantee for lenders.
However, there are things you can do to boost your potential for getting approved.
For one, make sure your credit report is clean of stains in your recent credit history; check that there is not negative information that should not be there like missed payments or late payments that you canceled on time. If there are, contact the credit agencies with documentation backing up your claim and demand that they remove that information.
If your recent credit history is bad, you will need to wait in order to successfully apply and get approved. Make sure you pay all your bills in time for at least six months and if you can get a credit card to start rebuilding your credit do so but make sure you never miss a payment and pay your balance in full each time.
When applying for a bankruptcy loan, if you can provide collateral, your chances of getting approved will increase considerably. Your home or your car can both be used as security for a secured bankruptcy loan. This will greatly reduce the risk implied for the lender and may convince him to approve your loan. If you can also provide a co-signer with a better credit score than yours, this will also boost your chances and contribute significantly to your bankruptcy loan approval.
The TRUTH is that a bankruptcy on your credit report will scare lenders away unless you can show that it’s been two years since the bankruptcy was dismissed and that you have been able to build an impeccable credit history without stains since.
Obviously, being overwhelmed with debt is a terrible situation but have you ever thought of the effects it has on others? We all know the effects it has on your ego and self confidence. Do you realize what the effects bad debt has on your wife, children and even your friends?
Bad debt can effect those closest to you:
1. Your Wife: All the people who say money issues shouldn’t have any effect on relationships are kidding themselves. If every time your wife goes to the grocery store only to return and hear you complain about the bill; not only is it unattractive., it’s annoying. Granted, she may say that she understands and will tell you everything is going to be OK; but trust me, it’s written in the genetic code of females to always be attracted to the person who can give her a fuller life. Read Here!
2. Your Children: I don’t personally know what it is like to grow up poor. However, if you continue the path of bad debt, your child is most likely to repeat the cycle. This is where kids learn how to say “I can’t afford it” instead of “I can charge it”.
3. Your Friends: I don’t know about you but I don’t want friends that I have to pay for. If you go out on a Friday night and can’t pick up a round of drinks I suggest you stay home or drink water. Your friends will say its OK picking up the tab the first couple of times but it will get old fast. Think about it!
The TRUTH is that no one thinks of the of the other people that their debts can effect. From having to live with your parents to asking a co-worker for a ride home cause your car has been repossessed. It sucks to have to go through that. So think about it next time you pull that CHASE card.
I wanted to discuss the question of whether it is better to Rent or Buy a home? This is a common question for those first-time home owners or someone looking to re-establish themselves.
In most cases, it’s better to buy a home than to rent. But not in every case. Comparing buying with renting is actually a fairly complicated endeavor. So to make it simple I’ll give you my Top 5 reasons why you should rent. You should usually buy instead of renting except when:
You intend to move within a few years.
Your rent is very low (2/3 or less of what your total monthly payments would be for buying a house, including taxes & insurance).
You don’t expect to live more than another 15 years.
You can’t afford the closing cost or down-payment for the home.
You think you would rather invest in other money vehicles i.e. (stock market, mutual funds, coins etc…..)
The TRUTH is it not nearly as easy to get a home as it used to be. That alone may take you out of the running if your credit is less than desired. The banks are gun shy to give out loans to people that may have difficulty making payments. Don’t take my word for it, you can read more here, It’s harder than ever to get loans.
Have you ever heard of a bankruptcy mailing list? You probably thought that you would quit receiving credit card offers after your bankruptcy, but because of a this list, you will receive more than ever! Credit card companies are eager to get your name after a bankruptcy, hence the need for such a list! They know that you want to reestablish your credit. They also know that you cannot get out of your debt for at least seven years, so they are happy to obtain the information of a “sure thing”.
Your bankruptcy after discharge became a part of a public record and there are people whose job it is to compile a bankruptcy mailing list. There are companies that hire people to gather the information from the public record so they can sell your name to the companies who are anxious to sell you their services. These companies range from credit card companies to credit repair services, and everything in between! Even your local car dealership may buy a list. This is a direct marketing technique to show you the programs they have available to help you re-establish your credit.
The TRUTH is that there isn’t a way to stop receiving mail from these companies once you are on a bankruptcy mailing list. As soon as you request to not be contacted by one company, your name has been sold to another. The mailing list would appear to go on forever. It can be overwhelming for some as they are being inundated with offers for credit like never before. These marketing lists can make it difficult for you to move on if you have chosen not to seek the reestablishment of your credit at this time.
