Finance Globe

Numerous businesses use debt collection services to help recoup the cost of unpaid debts. For example, if you cancel your cable service and don’t pay the last month’s bill, your ex-service provider may send you a few bills then send the unpaid bill to a collection agency. Because of debt collector’s bad reputation or perhaps the insignificance of the bill, many consumers often put off paying these collections. Besides personal responsibility, what need do you have...

Every debt instrument has an interest rate, typically expressed as an annual percentage rate, or APR. The interest rate the annual amount you pay for borrowing $100. For example, if your APR is 5%, you’d pay $5 in interest annually for every $100 you borrow. The interest rate isn’t an arbitrary number that banks set up. In fact, you indirectly control the interest you pay when you borrow because your credit score is one of the...

Some people can expect to have a hard time getting approved for new credit cards and loans. You might be one of those people. You have a low credit score. Credit scores are designed to predict the likelihood that you’ll pay back a loan or credit card balance. Since your score is based on your past payment habits, banks trust it. If you have a low credit score, indicating that you haven’t always paid on time,...

Dealing with identity theft can be a headache. One of the ways you can deter fraud is to add a fraud alert to your credit report. When businesses check your credit report they see the fraud alert which lets them know to take more steps to confirm your identity. Two Basic Types of Fraud Alerts There are two types of fraud alerts and the type you add depends on whether you’ve already been an identity theft...

It takes years of good financial behavior to build a good credit score, but all your hard work can be ruined in just a few months. One or two slightly negative actions, like a maxed out balance or additional credit card inquiry, won’t affect your credit score too much. But, several negative actions in a short period of time can decimate your credit score. Apply for a bunch of credit cards in a short time span....

Traditional credit reports and scores don’t typically take into account all the bills that you pay on time like clockwork each month – like your rent and utilities. In some ways, it’s unfair that you could get turned down because you missed a few credit card payments several years ago when you pay so many other bills on time each month. Lenders don’t really get a complete picture of your financial habits when you’re applying for...

Even with a great credit score, you’re not guaranteed to have your credit card and loan applications approved. Lenders consider a few other factors outside your credit score like your income and employment history. If you’re not a good candidate in all areas, your application could be denied. While being denied is disappointing, especially if you were hoping to be approved for a mortgage or car loan, the good news is that a denial won’t affect...

It’s hard to keep your credit intact when you’re going through a major life change like divorce, job loss, medical illness, or relocation. Your credit score can suffer in the process of these big changes, especially if you get behind on your bill payments. Foreclosure, repossession, bankruptcy, and debt collections are often the result of those big life changes that affect your finances and your ability to focus. The credit system may not always seem fair,...

Your credit report contains a record of most of your financial decisions. It impacts more of your life than you’d imagine – some parts that aren’t directly related to your finances. If you want to get a credit card or a loan, your credit report will be considered. That means your ability to buy a house or car is influenced by your credit report. Some prospective employers use credit reports to screen job candidates. Your current...

When it comes to credit, thin is not in. In fact, you want a fat credit file full of lots of positive information. What is a “thin” credit file and how do you know whether you have one? More importantly, how can you get a more desirable credit report? The word “thin” is used to describe a credit report that’s either short or that doesn’t have very many accounts or both. If you’ve just recently started...