Finance Globe

Understand what it really means if you're considering cosigning a loan for someone. A creditor may require a cosigner when the applicant doesn't have the credit history that a lender requires to approve the loan - maybe they have no credit history or a poor credit history. A cosigner may be required for an auto loan, a personal loan, or even a home loan. The main benefit to getting a cosigner is that the lender will...

Paying off debt is a concern for many consumers, and there are different opinions on the best way to go about doing it. Mathematically, it makes more sense to first pay off the debts that have the highest interest rate, and thus, are costing you more money in the long run. But, handling finances and debts is more than mathematics; human emotion is responsible for many of the financial decisions we make. Feeling discouraged from making...

Credit utilization ratio - a significant factor in your credit scoreMost consumers who keep a close eye on their credit score know exactly what a credit utilization ratio is; it's the percentage of your total credit limits that you actually use.A balance of $1000, with a $5000 total credit limit on all revolving accounts, equals a 20% credit utilization ratio.A low credit utilization ratio is good for your credit score; it's recommended to keep it under...

Living from paycheck to paycheck? Using your credit cards to pay your monthly expenses? Wondering how you'll ever get on top of your debt when the credit card balances seem to grow little by little each month? You're not the only one. Though it may be possible to play the game for some time, it's important to take back control of your finances now, before the problem grows any bigger. Small steps will get you back...

The credit crunchThe U.S. mortgage meltdown of 2007 started the whole process of a global credit crunch. Extreme bank losses, due to record numbers of defaults and foreclosures, put some lenders out of business, and caused many secondary mortgage markets to dry up.And, to limit losses, the financial institutions that survived the meltdown have tightened the grip on their cash, becoming more cautious in granting any type of credit, whether credit card, home mortgage, or auto...

Credit monitoring services offer subscribers access to their credit reports and credit scores from one or all three of the major credit reporting agencies, Experian, Equifax, and TransUnion.Many monitoring services allow unlimited access to your reports, even as much as daily. Some have other features to help you improve your credit, and may offer tips for your particular credit situation. Most services cost about $120 to $180 a year.Consumers may have different reasons for using a...

Your credit report may not be completely accurate.It's not uncommon for consumer's credit reports to have inaccurate information. These mistakes in your credit report can mean higher interest rates, larger down payment requirements, and less competitive loan administration fees. Catching those inaccuracies before you take out a big loan can save you big bucks. Check your credit report at least once a year, and especially before any major loan purchase, such as a home mortgage or...

It would be great if we had the security of knowing that we would never lose our job, never require major medical care, and never let our debts get the best of us. But life throws a curve ball every once in a while, and sometimes debts become out of control. It can be very stressful to worry about how to pay the bills when you don't know how you're going to maintain the life you...

We are all aware that lenders routinely consider our credit report when we apply for credit. We would only expect them to. But do you realize that your credit report can be seen by others without you even being aware of it? According to the Fair Credit Reporting Act (FCRA), anyone with a "legitimate business need" can see your credit report. Who looks at credit reportsLenders need to know the financial risk in granting credit; that...

Your credit score is the three-digit number that lenders obtain from a credit bureau in an attempt to sum up your credit risk. Your credit score gives lenders a snapshot of your credit and debt situation and plays a big part in whether or not credit will be granted, as well as the terms and conditions of your loan or credit card. Your credit score is determined solely by the information found in your credit report...