Category Archive: Establishing Credit

2015
09/17

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Establishing Credit

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Cash is king when it comes to security

These days, you rarely have to touch a dollar bill if you dont want to. In addition to the limitless amount of shopping you can do online, credit and debit cards are ubiquitous in the offline world, accepted by vendors large and small.

Also, mobile phone payments like Apple Pay and the forthcoming Samsung Pay and Android Pay (really original names, by the way) promise to make electronic payments even easier and more secure.

I did a quick survey of five coworkers, all of whom are 31 or younger. Four of them had no cash on their person. The other had a whopping $16. (Ill accept that there is a slight margin of error in my study because I didnt frisk them to make sure, and some of them could have been lying because they thought I was about to borrow money from them.)

In my experience, my young colleagues are not unique; the exclusive use of cards and phones to pay for things has become the norm for an entire generation of people. But electronic payment methods of all kinds are vulnerable to ever-scarier modes of attack. This is why I still like cash.

In many ways, cash is the most secure form of payment. It carries no personal data of any kind, so youll never have to worry about giving away your identity. Sure, if cash gets lost or stolen, its gone for good. But if thieves get your cash, they wont automatically have access to more of it.

Meanwhile, the theft of credit or debit card information begets more theft. Daily Press editor Steve Hunt told me a story of how his bank account was compromised while he was on vacation. Not only did the crooks clear out his checking account, they figured out a way to get an advance on his paycheck and steal even more money.

It was a mess that took quite a while to clear up, but luckily he had plenty of cash on him so he didnt end up stranded and penniless.

Steve told me another story about how identity thieves recently stole his debit card information without ever getting their hands on the card. He was likely a victim of a particularly scary type of cybertheft, where crooks use an electronic scanner that can capture your card information through the air. They only need to stand near you, and your information is hacked without you ever knowing it.

Steves bank alerted him to the fraudulent charge attempts and nipped it in the bud, and they sent him a new type of card that is supposedly less susceptible to these types of attacks. Still, its enough to make you worried about all the data youre carrying around in your wallet.

Theres now a special security sleeve available that claims to protect your cards from these scanners. While I cant speak to the efficacy of these sleeves, the more I learn about high-tech credit card fraud, the more I think I should buy one.

So what about Apple Pay? One of its selling points is its supposed security. You hold up your iPhone to a sensor that collects a payment from the phone. No actual credit card number passes through the air, and the payment is not sent until you unlock it with your fingerprint.

This payment form might be reasonably secure, but it has its flaws. According to a Los Angeles Times report from earlier this year, scammers are loading stolen credit card numbers onto Apple Pay accounts and running wild with fraudulent purchases.

It seems the bottom line is that no matter what type of electronic payment youre using, the bad guys will find a way to exploit it. Id love to just go off the grid and use cash exclusively, but its not really possible. Good luck trying to borrow money without establishing credit in your name, not to mention that having a credit or debit card is pretty much mandatory for certain things like renting hotel rooms or cars.

I can also admit that its just not practical or safe to carry around huge amounts of cash, but I like to always have some on me and use it for payments whenever possible. The anonymity and identity-theft security cant be beat.

In a cashless age where thieves are moving from the street to cyberspace, one way to mitigate the risks is to carry a few more greenbacks.

2015
09/12

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Establishing Credit

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Prep college students to fight identity theft

Kaiser says universities could be a prime targets for identity theft and some are just catching up to that idea. They may not always be aware of how much data they have. And, that starts with any kind of organization looking at, what is the data we have on this campus, what are the crown jewels of that data, and what are we doing to protect it?

Students need to protect themselves

Kaiser says students need to be ready to protect their personal information and their schools network as well.

It starts at the very basic level of every user whos accessing a network, simple things like software patches, strong passwords, multi-factor authentication, which is a way to have something in addition to a password. That should be implemented at almost every college campus at this point, he said.

Kaiser also says parents can help by sharing information with their students on campus. Inform your students, if there are any breaches to the family bank accounts, insurance company, or any place the family does business. College students now have their own credit cards, bank accounts, and other personal financial information they need to protect.

Identity theft, data breach, information to take to campus

As students move out on their own, they become responsible for protecting their own information and accounts. Mom or dad may have been able to lend a hand in the past, but young adults should start taking an active, vigilant role in their own protection. Parents, you can send the information to your students, so they know the best ways to guard against identity theft.

Ruth to the Rescue personal info protection

Set fraud alerts on your account so your bank or financial institution will contact you if theres suspicious activity.

*Change your passwords frequently and dont use the same passwords for financial accounts that you use for social media and email.
*Create strong passwords with a good mix of letters, symbols, and numbers. Do not use old standbys like 1-2-3-4 or password.
*Consider having a dirty card. Thats one credit card you use online or at stores. Then, just one card is at risk if someone should hack a retailers system.
*Reconsider how you use your debit card. Remember if that card is compromised, thieves take YOUR money. You will likely get it back, but you could be bouncing checks in the meantime.
*Monitor all your financial accounts carefully. If you have computer access, try checking your account weekly. Do not wait for the monthly statement.
*Check your credit report at least once a year to make sure no one is establishing credit in your name. This is critical for college students, as if someone has started using your identity, you might not find out until you try to buy a home or car and the mess will be hard to clean up.

In the event of a data breach to your account, here are some things to consider:

*Stay calm. Consumers are not liable for fraudulent charges on stolen account numbers.
*Check with the official website of the specific business for the latest information. Type the store name directly into your browser. Do NOT click on a link from an email or social media message. Scammers can spook those links and lead you to a bogus site.
*Beware of emails that may come into your inbox, claiming to help you deal with the crisis. Those emails could be also fake, hoping youll click on a dangerous link or share personal information.
*If your card was compromised, you will likely hear from the bank or card-issuer first. If you have questions, call the customer service number on your card.
*Consider putting fraud alerts on all your accounts. Check with each bank or financial institution on how to do so. You can usually set a dollar amount that will spark a fraud warning, if the company sees suspicious activity.
*If you see a fraudulent charge, report it to your bank or credit card issuer immediately so the charge can be reversed and a new card issued.
*Keep receipts so you can prove which charges are legitimate.
*When you hear about a data breach, share that information with family and friends, so they can also follow these steps to protect themselves.

2015
08/08

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Establishing Credit

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Connecting entrepreneurs on the East Side

 Earl McDowell Jr.’s company, GeoGraph LLC, is one of only two minority-owned businesses within its market niche in Illinois. That niche is developing customized geographic profiles via a geographic information system (GIS).

A GIS is a system designed to capture, store, manipulate, analyze, manage and present all types of spatial or geographic data.

“Geography is fun,” said McDowell. “It’s a wonderful time to be in the field. GIS modeling brings surveying, engineering and other disciplines together to map, track and analyze specific information a client is seeking.”

GeoGraph has been McDowell’s full-time venture for two years. His clients have included Ameren Corp., the cities of East St. Louis and O’Fallon, Illinois and the village of Washington Park.

The entrepreneur and SIU Carbondale graduate says Metro East Small Business Development Center Small Business Specialist Jo Ann May armed him with the connections and resources he needed to put his business on the map, so to speak.

“SBDC has been a huge resource for me,” said McDowell, whose company is headquartered in O’Fallon, Illinois. “I attended the Metro East SBDC’s ‘Make a Connection’ workshop last fall. It was there that I had the opportunity to shake hands and talk with several key executives at Central Management Services (CMS), the division of the Illinois Department of Human Services that oversees government contracts.

“Jo Ann introduced me to Paul Cerpa, deputy director of CMS, who was an absolutely critical connection for my company.”

Prior to connecting with the SBDC and Cerpa, McDowell had tried to gain certification as a Minority Business Enterprise (MBE) with the state of Illinois, but to no avail.

“When I had the opportunity to speak with Mr. Cerpa, he was already familiar with my file,” McDowell said. “At the SBDC workshop, he gave me detailed instructions as to how to modify my application so I could resubmit it.

“Within two weeks of resubmitting, my application was approved. That opened the door to a number of public sector projects and contributed to the significant growth of my business.”

The SBDC also assisted McDowell in qualifying for Illinois’ Small Business Set-Aside Program. The program reserves certain types of contracts for which only small businesses can compete.

“Jo Ann was incredibly persistent and professional,” said McDowell, whose experience includes work in utility mapping, fiber-optic mapping and work in the homeland defense industry. “When I approached the SBDC, I was just trying to create and sustain business. The Metro East SBDC has helped me take GeoGraph to a whole new level.”

The SBDC also introduced McDowell to Justine PETERSEN, a nonprofit organization that offers free guidance in establishing credit, improving credit scores and accessing capital.

“Thanks to Jo Ann, I’ve been a recipient of Justine PETERSEN’s microloans to help me expand my company,” he said.

May says clients like McDowell are ideal to assist because they work hard and readily apply the expertise given to them.

“Earl has definitely been working hard,” May said. “The network of resources our office has provided GeoGraph has given him the opportunity to move forward at an even faster pace. My fulfillment comes from arming our clients with the necessary tools to achieve success.”

2015
04/28

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Establishing Credit

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Financial Blogger Profile: Marco Carbajo (Business Credit Blogger)

At Equities.com, weve always been focused on building an active community among the leading voices within the world of finance. As with many other fields, in finance, weve noticed a significant shift away from traditional sources of financial news, tips and predictions, and toward a growing number of financial bloggers.

In this series, we profile some of the most distinct and noteworthy voices in the world of financial blogging. Here, youll find our recent interview with Marco Carbajo, founder of the site Business Credit Blogger. Read below for Carbajos advice on why you should never start a business with personal credit, and the growing weight of your social media presence in calculating your credit worthiness.

EQ: You started both Business Credit Blogger.com and Business Credit Insiders Circle. Can you walk me through how both of those sites came about?

Carbajo:Sure. BusinessCreditBlogger.com is a blog I started with the purpose of providing in depth information on topics that surround the business credit and business financing industry. The site features a wealth of free information and resources for small business owners and startups. Our mission is to provide small business owners with proven systems, tools, support, training, and resources to build creditworthy businesses plus have access to the funding needed to grow, operate, and expand without putting personal credit at risk.

Meanwhile, the Business Credit Insiders Circle is an actual online-based platform where we provide a business credit building system to business owners. They register their company, and our system takes them through the entire business credit building process from structuring their business, getting listed with the business credit agencies, establishing credit in the name of the business, etc. So, we go through the entire process from A to Z, in an online platform, which allows us to maximize a business owners funding potential. We also address any personal credit issues they may have with credit solutions and education. The system itself is a subscription-based platform that enables business owners to build a creditworthy business by accessing our small-business friendly credit sources, vendors, suppliers, lenders and business credit cards without putting their personal credit at risk every time.

EQ: I see. So did the blog stem from Business Credit Insiders Circle, or vice versa?

Carbajo:The blog started first, and after that we launched the software. For many years I did one-on-one consulting. When I got to the point where I could no longer take on more clients, I needed a platform to point prospective entrepreneurs toward, so I shifted my focus from one-on-one coaching to providing a platform that could benefit business owners on a national scale for building and maintaining strong business credit profiles and ratings. Everything that I would teach one-on-one is available on the platform, and it even allows business owners to adapt these new strategies, adjusting both their existing company, and for any future businesses they may start. That has allowed us to expand our reach, and help thousands of business owners nationwide.

EQ: Well, youve certainly come a long way. What was your original inspiration for starting the blog?

Carbajo:Originally, my background was in the credit and business consulting industry. Ive been in the industry for 22 years. As a company, we utilized business credit a great deal when we needed access to capital. A large majority of clients that we consulted were business owners, but many of them were unaware of personal and business credit separation. They did everything using personal credit, whether it was investing in real estate or running the daily operations of their business. I realized theres a big gap in awareness and knowledge when it comes to the business credit building process. Thats what really excited me about bringing this information to entrepreneurs and business owners throughout the country, and I believe the best way to accomplish that was through blogging and social networking. Thats what inspired me to start it, and its been my mission ever since.

EQ: I assume there are very real risks when it comes to connecting your personal credit with your business credit. What sort of risks are out there?

Carbajo:Well, if you have yet to establish a creditworthy business, its important to focus on establishing a business credit profile with all three major business credit reporting agencies; Dun amp; Bradstreet, Equifax Small Business and Experian Business. Lenders, creditors and suppliers pull reports from these agencies when assessing the credit risk of a company. Without an established business credit file, credit grantors will rely on a business owners personal credit, because that is the primary risk assessment barometer they have. As a result, a business owner puts their personal credit and personal liability at risk every time because every transaction, whether it is credit cards, etc., affects your personal credit.

Its not just the personal credit and liability thats impacted, theres another risk from a tax perspective. If youre comingling personal funds with your business funds, its a nightmare for your bookkeeper, but at the same time you could jeopardize the protection of the corporate veil. Separating personal and business credit is another important part of protecting the integrity of the business entity that you have established.

EQ: When youre starting a business and building credit for that business, youre really starting from scratch. What are the primary steps one should take?

Carbajo:There are a couple of primary steps. In our platform the first step is to ensure that your company is in lender compliance. By compliance, I mean that youre set up as a real business, and so the first thing that every business owner should do is go through those compliance steps. This could be steps that theyve already taken, but its also ensuring that the details are consistent from formalizing your business structure, to having a Federal Business Tax ID (EIN), having a separate business checking account, etc.

In addition, your business phone number should be a dedicated business line, and you should also have a dedicated business email, and a company website to name a few. There are a lot of details that go into this process but once a business meets these standard requirements it will be lsquo;credit ready. The next step is to look at your existing expenditures for your business. Where are you spending your money on a day-to-day basis, and how are you spending it?

For example, if youre travelling for business you have ongoing fuel costs that youre incurring. Rather than using personal credit cards or using cash you should be using a fleet fuel card. Basically, you should conduct an assessment of where youre already spending money to operate your business are you using business credit for those expenses or personal?

EQ: Youve been doing business consulting for more than 20 years now, but what led you to the field to begin with?

Carbajo:I took various types of credit education courses way back in my 20s. I was always fascinated with the concept of leveraging credit so I attended seminars, workshops and courses on business credit amp; business financing,including FICOreg; education seminars. It was truly an incredible experience working with industry experts, successful entrepreneurs and business financing companies which ultimately led me to sharing this knowledge and experience on a national scale.

EQ: Youve been writing the blog for about 11 years now. Has it basically gone the way you anticipated? Did you have an original intent for it? Do you have a goal for it today?

Carbajo:My long term goal is for BusinessCreditBlogger.comto be the leading authority site for entrepreneurs, startups and small business owners in the area of business credit and business financing. Just like Google Inc. (GOOG) is the standard universal platform when youre searching for information, and Twitter is the standard universal platform for microblogging, my goal is for the Business Credit Insiders Circlesbusiness credit building system to be the standard platform used for building a credit worthy business. Simply put, this is the system to use to ensure you establish a creditworthy company, so you can stop putting your personal credit at risk and maximize your funding potential. Thats my long term vision for it.

EQ: What advice would you impart to prospective business owners, or even those who have already been at it for a while?

Carbajo:To sum it all up, the number one thing that a lot of business owners have missed is that they have to know their numbers. The numbers are the most important thing in every aspect of business, because if you dont know your numbers, youre basically building your business while blind. You could be generating revenue, but if you dont know your cost of goods sold, or you dont know your profit margins, youre not controlling costs.

People think Ill just get more credit, Ill just get more money, Ill throw it in the business and Ill be okay, but a lack of money is not necessarily the problem in most cases. One of the major roots of every companys demise is a business owner not knowing their numbers, and not knowing how to improve the bottom line.

EQ: What do you suggest a business owner do to improve their numbers?

Carbajo:They should be diligently looking at their profit and loss statements, going through their numbers and finding ways to improve their profit margins. Also, its crucial to create your financial projections from the bottom up rather than the top down. As a startup, you have to assess what amount of funds youre going to need to launch the company, to keep it operating, and to grow that company.

The problem with many small business owners is that they only focus on getting the funds needed to start the business, but as the business starts growing, they may need to hire more employees. They may need to purchase more inventory, and then they start looking for money. I like the philosophy of digging your well before you get thirsty. Its in a companys best interest to start the business credit building process during the early stages in order to have access to the capital they need when they need it.

EQ: Even in the niche world of financial blogging, you serve a specific market. Do you correspond much with other finance bloggers?

Carbajo:Yes, I currently contribute regularly to sites such as AllBusiness.com, About.com, Dun amp; Bradstreet Credibility Corp. and the Small Business Administration. I also collaborate with other industry experts such as Diane Kennedy and other financial bloggers in the industry.

EQ: Since you began a decade or so ago, financial blogging has taken off quite a bit. Have you noticed greater trust in finance bloggers throughout the industry?

Carbajo:I believe so. In the finance blogging world, trust is a crucial factor. In my opinion its all about transparency, honesty and integrity in the information and services you provide. I pride myself on providing top-notch information even free information as well as video tutorials, tools, references, and resources that help to establish a connection with business owners.

The other most important factor is the social connection the ability to be accessible online. Whether its Twitter Inc. (TWTR) , Facebook Inc. (FB) , LinkedIn Corp. (LNKD) or YouTube. I believe all those should work congruently, giving people the ability to connect with you as they prefer.

In the coming years your online presence is going to be an increasingly significant factor in how lenders and creditors view the creditworthiness of your company. Whats really interesting is that its already happening. For example, Kabbage, a leading online provider of working capital, does not just look at your revenues coming in from PayPal Inc. ($PYPL), or eBay Inc. (EBAY) they also review your Facebook and Twitter profile as well. With strong social profile factors, youre able to get greater quantities of credit. So, its essential to not just focus on your personal credit and your business credit, but also your social profiles your online credit. Now is the time for business owners to focus on building up their social real estate as this will play an even greater role in financing in the coming years.

For more on on business credit from Marco Carbajo, visitBusinessCreditBlogger.com.

2015
04/28

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Establishing Credit

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Is My Credit Score Useful Outside The US?

Youve packed your boxes, leased your condo, sipped champagne at your bon voyage party and learned a few essential phrases in French (or Korean). One phrase that you probably won’t need to learn, however, is credit score. That’s not because they don’t exist in other countries: in fact, the American credit bureau Equifax operates in 15 countries spread across Europe and Latin America.

For some globetrotters, the headache that arrives the morning after the bon voyage party can’t be blamed on the third glass of champagne. It might be from that anxiety-provoking question: Will my credit score matter overseas?

The short and sweet answer– especially sweet to those whose credit score is in the lower ranges (see How Bad Is My Credit Score?) – is that no, your credit score won’t follow you overseas. In that sense, your credit score will do you less damage than a nasty cold caught at the JFK departure gate.

Up in the Air

The moment your 747 reaches altitude on the way to London Heathrow or Tokyo Narita airports, your American credit score does not exactly disappear into thin air. However, its power – at least on foreign soil – is negligible to nonexistent. Its true that many countries, including Canada and the UK, have credit scoring systems that are not entirely dissimilar to the American system. Yet not only is there no communication between the systems, expect to be surprised by key differences in the necessary components of establishing credit in other countries. For example, in the United Kingdom, lenders consider voting behavior as a positive sign – which means that unless you become a UK citizen and sign up for electoral polls, youll have to seek out other ways of establishing credit.

Its not that overseas lending institutions dont care about the credit history you´ve established in your country of origin. Countries such as Germany – which, as the financial stalwart of the European Union, has a highly sophisticated banking and credit system – simply lack the systems to thoroughly investigate a potential clients credit history in the United States.

While technology may have posed an initial barrier for the kind of global credit score system that might now be technically feasible, laws at the national and international level prohibit sharing credit histories with overseas lenders. The reason is consumer protection: The growing trend of identity theft, which preys upon customer data, makes such legislation essential.

What to Expect

If foreign lenders will not have access to your American credit score, what can you expect if you want to, say, open a credit card with a local bank or buy a car? Overseas banks and lending institutions may indeed inquire about outstanding debts in your home country. While such inquiries may not be followed up with verification, it goes without saying that it´s crucial to be truthful when dealing with overseas financial institutions. Expect to furnish income verification from your current employer, which should be fairly simple to obtain from your new place of work.

If Your Credit is So-So…

If youve consistently missed credit card payments or defaulted on a car loan, perhaps the promise of starting from scratch – credit-wise, at least – is one added appeal of an overseas adventure. This fresh start applies to those who have declared bankruptcy as well: Although total filings by businesses and individuals fell to 1.03 million in 2013 from 1.19 million in 2012, according to a report from the American Bankruptcy Institute, thats still no small number. In 2014 more than a million bankruptcies – both business and individual – were filed in the United States. While a bankruptcy doesnt “disappear” on your credit back home (see Bankruptcy and Your Credit Score), it will have far less power (if any) overseas.

If news that your credit score means about as much in Bogota as your local gym membership card provokes a sigh of relief, great. Just don’t get too relaxed. While an overseas relocation might offer a fresh start for those whose credit score back in the States prevents them from getting the best interest rates on major purchases like cars or homes, it’s not a catch-all solution – especially if you plan to repatriate to the United States in the future.

2015
04/26

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Establishing Credit

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Five Things Expats Without Foreign Credit Struggle With While Overseas

The difficulty of getting credit abroad shocked Aneesh Varma when he moved with his job at JP Morgan to the UK about eight years ago. He struggled to get a bank account, phone contract and credit card. The experience, he says, motivated him to help launch Aire, a London-based startup working to establish alternative credit scores for people with “thin” credit files, including expats.

“The current credit system was established in the last century,” says Mr. Varma. “And while it’s very data-driven, if you don’t have the data, you don’t have access.”

Aire is working to establish something like an international “financial passport” for credit that would draw on data such as a consumer’s professional background, decision-making process, and cognitive intelligence, says Mr. Varma.

But these are still early days for companies like Aire looking to buck the traditional credit-reporting system. In the meantime, financial planners say expats should prepare for the worst when it comes to establishing credit and procuring goods and services that require some credit. Here is a look at a few credit-related stumbling blocks:

Mobile-Phone Contracts: Expats whose employers do not provide mobile phones–or those expats who want phones for personal use–may struggle to get decent contracts and financing for new mobile phones. Some expats say they have ended up using pay-as-you-go plans that lack the convenience of more upmarket, long-term contracts.

Credit Cards: Even with pristine credit in your home country, wealth managers say you will likely struggle to get more than a basic card. Expats, for the most part, will need to establish credit just as they did in their home countries: slowly over time with basic cards that will likely not offer great rewards programs. Some expats have also reported problems getting more advanced credit card technology, such as cards that allow for contactless payment.

Premium Bank Accounts: While expats can usually get basic banking services, they’re less likely to be offered accounts with rewards, perks or benefits such as overdraft protections.

Internet Service: In some countries, broadband providers require that users have good-enough credit in that country to keep up a long-term contract.

Mortgages: In some countries, mortgages for non-citizens are either nonexistent or severely restricted. Some US banks offer mortgages for foreign properties, but be mindful of currency fluctuations. Wealth advisers also recommend being careful about making a long-term purchase if you are not entirely sure of how long you will remain abroad.

2015
04/23

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Establishing Credit

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Ruidoso Wells Fargo to host Teen Financial Education Day

Wells Fargo has announced it will host a Teen Financial Education Day at all of its banking locations in New Mexico on Saturday, April 25.

Locally the event will be held at both the Ruidoso Wells Fargo, 401 Sudderth Drive and at their Ruidoso Downs location 26182 US Highway 70 inside Walmart.

The event is designed to help educate students and their parents about the importance of money management, establishing credit and preparing to pay for college.

At Wells Fargo, were committed to the financial success of our customers and the communities we serve, said Yolanda Garcia, Area President at Wells Fargo. Were excited to have an opportunity to invest in the financial future of students by hosting this event at our New Mexico banking stores.

Teens and parents visiting the stores will find:

Special seminars on budgeting, saving, and managing money using Wells Fargos Hands on Banking® curriculum.

Overviews of the Get College ReadySM website and 2014 CollegeSTEPS® (PDF) magazine.

Planning for College and Your Financial Aid Journey in 5 Steps resource guides, along with other college preparation materials.

Southwest District Manager Courage Idemudia said that specialty bankers will be ready to meet local customers that attend the event.

We are excited and honored that we are able to go into the community and go into the high schools and elementary schools and speak to students about financial literacy, Idemudia said. We encourage parents and teens to attend to learn about money management.

2015
03/28

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Establishing Credit

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What Your Credit History Says to a Mortgage Lender

If you’re thinking about buying a house, the first thing you need to do is speak with a mortgage lender and get pre-approved. This preliminary step can save you time and heartache.

A pre-approval isn’t required to look at homes or bid on a property, but it does work to your advantage. Since this involves a lender checking your credit history and reviewing your income, you’ll learn early on whether youre eligible for a home mortgage and how much you can afford to spend. And if youre not eligible, you can improve your financial health and buy later.

Although lenders primarily look at your income to determine how much you can afford, your credit report plays an important role in the approval process. Of course, the bank looks at more than just your credit score. They pull your entire credit file, and your credit history reveals a lot about the type of applicant you might be. You can have sufficient income to buy a home, but if there are problems with your credit report, a lender may deny your application.

Here are four things a bank may conclude after looking at your credit report.

1. You won’t pay your mortgage on time

Credit reports list all of your old and current credit accounts from auto loans to credit cards. There’s also information regarding whether these accounts are in good standing. If you make monthly payments on time every month, creditors will update your credit report with the statement “paid as agreed.” However, if youve had a problem with timeliness in the recent past, your creditors may report an account as 30 days, 60 days or 90 days past due. Banks pay close attention to these notations. If you have a history of paying bills late, chances are youll pay the mortgage late.

2. You might be experiencing financial problems

Each application for new credit triggers a new inquiry on your credit report, which can be damaging since they lower your credit score by two-to-five points. Inquiries also remain on your credit report for up to two years. If a bank checks your credit and notices several inquiries for credit cards or personal loans in a short span of time, it can appear as if you’re desperately seeking financing. This is a strong indicator of credit problems.

According to MyFico, people with too many credit inquiries have a higher risk of filing bankruptcy. Since banks dont want to take a chance on potentially risky loan applicants, too many inquiries can hurt your chances of getting a mortgage.

3. You have a spending problem

Your credit report not only lists every credit account you have, but also current balances. As part of getting pre-approved, the bank calculates your debt-to-income ratio to determine how much you can afford. So, it helps to pay off as much debt as possible before apply for a mortgage. Whereas low credit card balances indicate self-control, having several maxed out credit cards indicate a potential spending problem. P

lus, too much debt can lower your credit score, to the point where you may not meet the bank’s minimum credit score requirement. And if you do qualify for a mortgage, the lender might charge a higher interest rate because of high debt.

4. You dont have enough credit experience

Your credit report also reveals the length of your credit history. And unfortunately, if youre just recently establishing credit and you dont have a lot of accounts under your belt, some lenders will not approve your mortgage. Of course, this isnt the rule across the board, so if one bank turns down your application, you might have better luck elsewhere.

Keeping your credit report in good shape is one of the best ways to improve your odds of getting approved for a mortgage loan. Your income is important, but if you have bad payment habits, a spending problem or other issues with your credit history, these factors can stop a mortgage approval.

2015
03/19

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Establishing Credit

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Auto Loan Solutions Is on a Mission to Coach Customers on Re-establishing …



Auto Loan Solutions Is on a Mission to Coach Customers on Re-establishing Credit
Ontarios largest bad credit car loan company launches new blog to educate customers on credit-building, financial advice, and vehicle purchases.

2015
03/14

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Establishing Credit

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Orange Moldova offers new add-ons for businesses

Orange Moldova is offering new add-ons to business customers who are using its Cost control service. This service enables companies to manage their employees mobile telephony costs by establishing credit limits for individual usage. Pro add-ons enable businesses to communicate via calls, SMS or internet. These add-ons can be activated by accessing the *100# menu.