State House Faces Short-term Lending Program House Bill 2191

There is a kind of short-term lending program being considered as of the moment by the state House. The lending program involves a 14-day, $300 loan together with approximately $42.50 of fees and interests.

The House Bill 2191 is dubbed by supporters as a consumer protection measure. In contrast, it is considered as a bankruptcy by design by opponents because some banks in the state are offering two-week or payday loans with 369 percent of percentage rates every year.

Last May 8, the meeting was held and one of the members of the House Consumer Affairs Committee who voted in support of the bill was State Rep. Gene DiGirolamo. However, although he voted yes, DiGirolamo still have a few worries about it and is still contemplating whether or not it suits the people of Pennsylvania. He added that voting in favor of the bill does not indicate right away that it is supported by a representative.

The lending bill was co-sponsored by State Rep. Frank Farry. He said that there are worse loan programs offered through other countries and states than the bill.

According to Online 1-Hour Loan, a company based in California, the bill links borrowers to banks that offer fees ranging from $15 to $25 every $100 loaned for 1 to 15 days or more. Consumers can loan up to $1,500 and should earn a minimum of $1,000 every month. In addition, the company said that bad credit is not a hindrance in getting a loan.

On the other hand, there are also critics of the House Bill 2191. One of them is the Keystone Research Group.

Moreover, the Navy-Marine Corps Relief Society feels the same way. In fact, it thinks the bill will be mostly risky to retired sailors, Marines and their respective families.

Also, credit counselor Joan Reading said that any kind of short-term lending is opposed by the Credit Counseling Center of Bucks County.

Wedding Season’s Here

Summer is here and love is in the air! Though most weddings still occur on New Year’s Eve and Valentines’ Day, summer is dubbed as the wedding season because of the mass weddings that American couples would hold on the month of June and July (but not on August though).

However, weddings could be financially challenging for couples not to mention that after marriage the couple would have to share everything and by everything, this includes debt. Though, it still would depend on how the couple would manage their finances as partners that would determine the outcome of the marriage;may it be a good and happy one or a bad one.

But before anything else, there is good news that couples must hear. Whatever debt your future husband or wife has in the community’s property, will not come to haunt you. This sacred oath, as many call it, does not make you liable for all your spouse’s debts. It is illegal for collectors to force you into paying your partner’s loans, mortgages, or any other debts that he made on his own name and before your marriage.

If your partner has bad credit then it will not be a problem for you, unless you apply for a co-creditship of course. If you apply for a credit together then your credit score will merge and literally, what is his will be yours too. Though you can get rid of this bond legally in the future, it is very advisable that you avoid it in the first place since it could be a very irritable and time consuming effort in the future.

Now you heard the good news, let us proceed with the not so good one. If the creditor gets hold of a legal document from court he can confiscate anything that belongs to your partner, or any assets that both of you have such as bank accounts, property, house and other buildings. If your partner has shaky credit, be extra careful of co-signing an agreement to get a joint-property because not only can his personal things be taken if he falls into debt, you will be going down ruined, with him. Once you purchase a property and someone has their name in the document with yours, he or she is considered as the co-owner of the property, and this gives the creditor legal right to take anything that you own too even if the debt was not you’re doing.

To make things worse, those vows that wedded couples take for richer or for poorer are not just mere words. In most of the states even including Nevada, those who make this vow would have to pay for the expense of the other. The most expensive of these fees is one’s medical debts. Even if you are separated for years, you will still be responsible for your partner’s medical care.

Before you two get into a marriage it would be wise to not just plan about the wedding arrangements. Your future plans 50 years from after the marriage would be a wiser topic to discuss.

Most Asked Questions About the VA Loan

VA is a popular loan program for United States citizens, every week, the agency receives plenty of questions from their customers and this article composes the some of the most frequently asked questions by clients.

Many Americans inquire the agency about tips on how to cope up with bad credit. Well, this is what you should do: though this is might pose as a problem for many, in order to qualify for the VA’s loan the military household must have a FICO credit score of 620 or better. But if the individual who is applying for a loan has ever filed bankruptcy in the past, then an arrangement can be done with the agency.

The agency does not turn its back on poor credit clients; rather they become a strong partner with these citizens and help them back on their feet. The agency aids these applicants to qualify for the loan and repair their credit status.

Another query is about a spouse or a family member that has bad credit. To make it easier for the household, it is advised by the agency for a solo borrower to surface instead of having a co-borrower that has a bad credit. If ever you want to have a co-borrower then your credit scores must add up to at least 620. It is possible to have a solo borrower obtain a loan but he must be able to qualify all the criteria of the agency and afford the loan payments.

If you are wondering what you can purchase with a VA loan then you should know that it can be used to buy a primary residence. A vacant lot and other business or commercial related properties can also be bought with the loan. You can even buy a newly constructed property, but this is limited only to some land owners and money lenders.

So now, how much is a VA loan? VA loans usually just caries with the market. If you are an applicant you can usually get the loan interest rate before the approval process.

New Law Requires Auto Dealers to Share Credit History

A new law has been passed by the United States District judge this week and this requires automobile dealers to share their bad credit history report to their clients. This gesture ensures the protection of costumers from automobile lenders’ high interest rates.

It is now mandatory for car dealers to supply transparency to their customers about their current financial standing even if it involves a third-party lender. District Judge Ellen Huvelle has required these companies to follow this new regulation to give caution to clients for the possibility that their automobile dealers might be unfairly charging them with high interest rates because of past credit status.

After the long altercation between the National Automobile Dealers Association, also known as the NADA and the Federal Trade Commission or the FTC, Judge Huvelle came with the decision to require car dealers to inform their buyers that they have had bad credit history.

Before the new law was passed, there already is a current law that required the dealers to inform their customers about their increase in the interest rate if it is caused by bad credit history. However, according to the NADA, a loan coming from a third-party persona like a financial institution was an exception to this law.

The FTC said that dealers were supposed to be obligated to share this crucial information with their clients and the Judge agreed. Getting an auto loan with bad credit is a very difficult task to accomplish, and customers are even bombarded with higher interest rates.

But it does not always have to be this way. There are ways for you not to be caught in a very high debt when you try to get a car. They include getting away with dealership finance.

One way is to turn to credit unions, though they may be strict in giving you a full credit history check, their automobile loans are very much cheaper than those offered by dealers.

Another way is to do face to face lending. This type of lending will allow you to find people who would be willing to lend you loans that have rates lower than auto dealers.

One last tip is to check your home equity loan. This will not only ensure you of a low interest rate it may even help you in your tax rate. However, if you are careless and you are not able to pay back the loan you do not only get your car repossessed, you also lose your house.

Protect Your Children’s Identity from Being Stolen

Can you imagine a pre-schooler owning a car and having debts amounting to hundreds of thousands of dollars? And think of a teenager having a yacht and lots of credit.

These cases are real according to NBC Bay Area’s Investigative Unit. A lot of children are growing up having debts because their identities were stolen. The bad effects on these children with stolen identity are bad credit, bad background, loan that were defaulted and lost opportunities. It also costs families of these children $13 billion every year.

The researchers believe that these people who are stealing children identities are involved in an organized crime and illegal immigration. They target the social security number, birthdates and other vital information that could be used.

Identity theft of children below five years old has increased by 105% versus last year according to the research made by AllClear ID.

The CyLab of Carnegie Mellon University has conducted a study which shows that 10.2 % of the 43,000 children they checked had their identity stolen. The CyLab study was the first to conduct the first large scale study on stolen identity of children. While the 10.2% may seem a small percentage, this is 51 times than the stolen identity of adults according to CyLab.

One of the victims is ten- year-old Reilly Dennedy. Reilly’s mother said that the identity of his child was stolen 11 years before Reilly was born. It was easy for the thieves to use social security numbers because the numbers are released sequentially. At present the social security numbers are not anymore released sequentially.

It was found out by Dennedy with the help of police that one thief used Reilly’s name to acquire credit and another used her social security number to put up a utility account.

According to Cylab, the thieves used the stolen identity to buy large items like homes, cars, boats and even to get loans and employment.

The victims have never found out who stole their identity.

Dennedy is the Chief Privacy Officer at Mcdee. He is also the founder of The Identity Project, a website which educates people on how to avoid identity theft. But it is ironic that his family is a victim of this theft. He said he never thought it could happen to his family.

The crime is fast growing because not enough penalties are imposed on those who are involved in the crime, according to Dennedy. Parents have to be very careful in protecting their children’s identities including the infants.

The CyLab recommends that

* Creditors must do careful and detailed background checking.

* Parents should secure safely the social security number of their children.

* Parents should educate their children at early age about Cyber security and to secure and protect their social security number.

* The cyber risk of children should be checked regularly to find out whether their identities are secured and not stolen.