Rent to Own, Lease Option to Buy Gives Buyers Time to Improve Credit

ReMax True Advantage’s agent Ezell, has been working with various clients pertaining home loans and provided them with great deals with reasonable prices. According to her, the current financial crisis prevents people from buying houses, but with the new rent-to-own terms, they have both the time to clear their credit and own a house.

The houses that Ezell sells allows the client the right to refuse to purchase the house they will rent, they will be required however, to pay an option fee which is 2 percent of the total price of the house if ever it were to be bought.

The number of houses sold is now waning compared to the last two years. Most of the landlords that Ezell deals with are very much willing to sell their properties but due to the fact that there are too many homes in the market and very little interested buyers, leasing the property is their best option at the moment.

Aldo Aguirre a military member, is selling homes and also open to rent to own terms. According to him, it is beneficial for military members such as himself to rent to own a house. His job requires him to move from place to place and he must rent or sell his house once he is based elsewhere.

He currently owns a house in North Carolina under a rent-to-own deal, he says it has been very beneficial for himself and his buyer. The contract expands within 2 years and both parties would have to agree on a price for the house for its expected market value after 2 years’ time.

In these terms, Mr. Aguirre is getting payments from rent which takes care of the house’s mortgage and at the same time, the client takes care of the lot. The rent-to-own contracts are very popular to a buyer who are interested to buy a house but currently lacks the financials to purchase it.

Car Loans for Citizens Who Have Filed Bankruptcy

Auto Credit Express is dedicated to answer queries of clients who have difficulties in their finances due to credit problems; they have been at it for twenty years now. One of the most asked questions in the site are about bankruptcy.

First of all, you must know that there are two types of bankruptcy for a private person: Chapter 7 and Chapter 13. These two can wither be discharged or dismissed.

To dismiss bankruptcy is more associated with a Chapter 13 bankruptcy, this is typically occurs when a person fails to fulfill an ordered payment by the court on time. Subprime automobile dealers would often dismiss you as a client as well if a dismissal is stated in your credit report by the court.

A discharge on the bankruptcy however, occurs when the client successfully pays the court’s fees on time. A letter of discharge will be issued by the court as proof that you have been able to comply with their terms, this letter will also serve as evidence that you have been successful in completing bankruptcy, in case a delay in credit bureaus’ reports occur.

After you have completed bankruptcy though discharge, you can start rebuilding your credit again. Have your automobile loan and your credit card liabilities reaffirmed. You will also have to restart a new revolving credit and an installment credit.

A credit card is a good example of a revolving credit. If you cannot get a regular card then it is very likely you can get a secured credit card instead. This card would bind your credit limit depending on your savings’ remaining balance. You have to sign up for your preferred credit limit deal, and maintain a steady balance of 30% in your balance or less.

A car loan is an example of an installment loan. It is hard to look for dealers who sell new cars to people with problems in their credit, especially if they have just recovered from bankruptcy.

How Not to Get Bad Credit When You’re Married

The leading causes of divorce are often associated with financial obligation from the couple. To make a marriage last it would be wise to sit down with your partner and discuss your finances, how you wish to manage them.

Experts say that planning and creating a budget can help you in keeping your marriage. You should also learn to invest and split responsibilities in your financial bills and fees as early as you have started living together. But paying bills and investing will not be enough, there should be a consistency in your monitoring of bills and bank records to avoid discrepancies in the records. Though you have been used to managing your single account for years, you have to get used to the idea that you and your spouse are a team now and like the old saying says “what’s yours is his”.

Here are the things you should always bear in mind now that you are married:

First, you should always know your status; you and your husband should discuss your finances and be transparent with one another. It would be wise for both of you to obtain a free copy of the credit bureau report that is up to date and correct.

If you find errors in the report never hesitate to call the agency and have them corrected. To make things better you should compare your credit score with your partner, share insights on how to help improve each other’s scores.

Second, never cancel your existing credit cards. Despite the fact that you are now married, your old card is still stored and updated, do not cancel it because it might affect your score, in fact, it would be smart idea to have it maintained under your name so that if ever you are going to divorce your current husband or if he dies you have your own money to spare.

Third, always remember to apply for a credit account when you really need it. When you get married you may go on purchase frenzy and when a store offers a discount card for their merchandise you may be tempted to sign in. But opening too many credit accounts would cause more damage than good, and you may even end up paying much more than you could have without the discount card.

Finally, the most important of all: make sure you never pay your bills late. Late payments pose very negative impacts on your credit score. When you have assigned each other which bills to pay early in your marriage, make sure you religiously follow your deal.

Experian Launches Latest Extended View Credit Score

Last Wednesday, one of the data collection and credit reporting agencies, Experian, introduced Extended View, which is its latest credit score. According to the agency, it could attract as much as 64 million US consumers who do not have credit scores into the lending world.

Besides the information found in the typical credit score, Extended View includes other information such as payday loan repayment history, rental payment history, or missed child support payments. Moreover, the Extended View score will have a range of 401 to 900, which is the same as that of VantageScore.

Steven Wagner, president of Experian Consumer Information Services, said that as of now, fifteen small and large lenders are thinking of using the score. In addition, banks, credit unions, auto lenders, phone and utility providers can also make use of the Extended View score.

A credit score helps lenders assess borrowers in terms of their risk of lending. A high score indicates a lower risk and lower rates, but a low score indicates a higher risk and higher rates. On the other hand, those who have zero credit will have the most difficulty in getting a loan.

The Extended View is meant for borrowers with small or zero credit history. The Center for Financial Services Innovation said that these borrowers are anticipated to increase in the near future.

Based on Experian’s research, there are 64 million people who have small or zero credit and that 20 million of those are as eligible as prime borrowers and qualified for better rates.

Extended View score is actually based on three data sources: mathematical calculations derived from current credit information, rental payment history and public record data.

Wagner added that the latest Extended View score will be used with current Experian-branded credit checks. However, consumers cannot apply for a copy of their Extended View credit report as of yet. Consumers will be able to access it in the future if there are sufficient lenders who implement the new score.

New Payday Loan Bill Awaits Delaware

Washington’s Statewide Poverty Action Network campaign manager Danielle Freidman is pleased with a passed bill in 2012 about curb payday lending for he believes it has been very helpful to the nation. According to data, since the law was passed the number of short-term loans has decreased rapidly from the overwhelming three million in 2009 to only one million in 2012.

This state law limited an individual’s loan from the federal state to only eight in a year. There was also a database that was developed by the government agency to include the information of the borrowers and their loan details.

This State law is the basis of Delaware legislators while drafting a payday-lending bill, known as H.B 289, which has already been approved by the House of the State and the Senate, it only awaits one last signature from Governor Jack Markell.

This act from the state of Washington is exactly the intermediary tool that other states need to manage the continuing crisis on the payday loan debts.

The bill only allows five short-term loans for a person in a year, or a twelve-month period. Short-term loans are amounting up to $1000 and not only $500. This law also requires the formation of a database to track the loans that individuals have availed in twelve months. The Banking Commissioner will be in charge of delivering reports on the payday loans during General Assemblies of the State.

Payday loans aroused in the 1990s in the United States, these are short-term debts that are usually high in amount. These can be applied in the internet or through payday lending stores. This requires a fee and a check to the firm that the employee will pay the debt with their salary.

According to the West End Neighborhood House executive director Paul Calistro, there currently exists 350 payday lending stores in Delaware. He adds that these establishments are extorting financially challenged citizens making their status even worse.