Tag Archives: Banks

What Banks Won’t Tell You – Debt Settlement Advice

Debt settlement companies are accustomed to hearing how people aren’t getting true answers from banks, at least not complete truth. Every good debt settlement company will help educate you about the way banks and lenders take advantage of everyday people by only partially informing them.
For example, if you are a young person, do you know that banks and credit card companies target you? Students on college campuses and people who are under 25 are courted by banks because they don’t think about their purchasing choices over the long term. More than 120 universities have cut deals with banks to issue student-ID cards that are also ATM and check cards. Schools make millions of dollars from those deals. In essence, colleges are offering up their students as sacrificial lambs to credit card companies. No wonder people are in so much debt today, they’re taught from college that credit card debt is a good thing. Debt settlement companies can help you grow out of the mistakes of your youth, and become financially free.

Courts may seem like a haven for those suffering under mountains of debt, but in all honesty the courts don’t care about your debt problems. Since the late 1990’s, banks included arbitration agreements into their contracts, meaning you won’t be going to court if there’s a problem. This means that rather than trying to sue banks over their activities, you will have to go through a private courts, which are heavily skewed towards corporations. Debt settlement allows you to avoid such nightmarish scenarios and deal with your debt outright.

Also, did you know banks are charging extra fees for your overseas trips? Your heavy credit card debt may be a result of a “once-in-a-lifetime” European vacation. If you use a credit card to take money out of an ATM over in Europe, it may cost up to $ 7, plus any credit card fees on top of that.
Overall, credit card companies don’t tell you very much about their services. Most of the unsecured debt that debt settlement companies help people with comes from credit card debt. Part of this is that credit card companies don’t give you much information beforehand. In spite of the pages of tiny text you get in the mail, credit card companies don’t disclose their inner workings. In fact, during a 2007 investigation, The Government Accountability Office discovered that although banks are required by law to make fee information available to customers, one third of the banks investigated didn’t provide the required information. Worse yet, more than half didn’t have any fee information on their Websites.

In the end, it’s important to remember that where you’re getting your information is important. Debt settlement companies are on your side, and want to see you cut down as much of your debt as possible. Debt problems can plague you for life, impacting your credit score, interest rates, jobs and more. Contact a quality debt settlement company today to begin clearing out past debt and paving the way towards a successful financial future.

Debt Settle Inc – Debt negotiation company / debt negotiation companies – for more information about debt settlement visit debtsettleinc.com.

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Why Do Banks Turn Down Applications For Secured Credit Cards? – Credit Card Insider

Today’s question is: Why do banks sometimes turn down applications for secured credit cards?

Ask us your credit questions in the comments and learn more about secured cards here: https://www.creditcardinsider.com/credit-cards/secured/

Secured cards are generally targeted to consumers with poor or no credit. The applicant will make a deposit to the bank, and then receive a card with a credit limit based on that deposit. In some cases, however, a person may be denied for a secured credit card even though they fund the deposit. It turns out that these cases are not always very profitable for the card issuer, leading to a surprising number of denials.

Every week, John Ulzheimer answers YOUR credit questions. Email us, give us a call, or ask on live chat, and we may answer your question on YouTube!

To learn about credit scores, credit reports, managing debt, and how credit cards work, check out our learn section at https://www.creditcardinsider.com/learn/

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Big Banks’ Second Mortgage Foreclosure Game

Big Banks' Second Mortgage Foreclosure Game

“In January, federal regulators announced an .5 billion agreement with 10 mortgage servicers to settle claims of foreclosure abuses, including bungled loan modifications and the wrongful evictions of borrowers who were either current on their payments or making reduced monthly payments.”*

Can big banks oversee themselves? Well, if the second-mortgage foreclosure shell game they’re playing with homebuyers is any indication…no. How does this shell game work, and why do big banks keep winning? Cenk Uygur breaks it down.

*Read more from Elizabeth M. Lynch/ New York Times:

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Why Banks and Credit Agencies Love Low Credit Ratings

People understand having a minimal credit history costs more than having a top one. However, exactly what couple of customers ever before learn is simply how costly their particular reasonable credit score in fact is. These days…

* We WON’T discuss the actual fact a decreased credit history could cost you a great job (because over 50% of businesses are now running credit inspections on job seekers).

* We WON’T explore the actual fact you might find yourself paying around 40percent more for your automobile insurance (because most insurance companies now check credit when quoting premiums).

* We WON’T talk about the very fact most utility organizations for Electrical, Gas, liquid or Cable now demand a deposit before services could be turned-on considering the lowest credit history.

and

* We WON’T mention another FIVE means a reduced credit rating can cost you cash and work out life harder every month.

No… these days we will talk about usually the one means the lowest credit history costs a fortune and why the banking institutions and credit agencies love your low credit rating (if you opt to do-nothing about any of it). This one component of credit or even addressed will surely cost the common United states over $ 100,000. Worse, it could price the average large financial company or loan officer over $ 100,000… every year. The saddest element of all? The banking institutions and credit agencies win if you choose to do nothing because its’ your reduction along with your loss is the gain. Let’s clarify… We all know the greatest acquisition a consumer makes in their lifetime is the house. Consequently, the best number of interest ever paid in a consumers’ life time is supposed to be from the loan, for the home. Again, most customers know with a minimal credit history they’re going to pay a higher rate of interest thereon loan. However, couple of consumers ever understand the REAL quantity that increased interest ends up costing all of them on the lifetime of the mortgage. After all, the typical United states Consumer now lives in a world where their only focus whenever financing anything, is all about,

The payment.

This particular thinking feels great in short run but becomes costly in the long run. Let’s evaluate some informative figures as to the reasons with the tale of Bill and Ted. Bill and Ted both purchased domiciles in the same neighborhood, for a passing fancy street and also for the exact same cost. Bill had increased credit score and borrowed $ 180,000 to buy a 4 bedroom 3 bathtub house. Considering their high credit rating he got a 30 12 months fixed price loan at 5.5percent interest. Some tips about what Bills loan looked like:

His loan quantity had been $ 180,000 His rate of interest ended up being 5.5per cent This gave Bill a monthly payment of $ 1022.02 His payments over 30 years totaled $ 367,927.00 Their interest compensated over the term totaled $ 187,927.00 (Of his $ 367,927 in total repayments… $ 187,927 went along to interest). Bill paid for his home two times after interest, but don’t wince until we are done speaing frankly about Ted.

Ted had a reduced credit rating and borrowed $ 180,000 to shop for a 4 room 3 shower residence on a single street as Bill. He got a 30 12 months fixed loan as well, but due to his low credit rating his interest had been 8.0per cent instead of Bills 5.5per cent. Here is what Teds loan for similar $ 180,000 loan appeared to be:

Teds loan amount had been $ 180,000 His rate of interest was 8.0percent This offered Ted a monthly repayment of $ 1320.78 (about $ 300 more every month than Bills) Teds payments over 30 years totaled $ 475,479.00 Teds interest paid across term totaled $ 295,479.00 The issue is not too Ted paid over $ 295,000 in interest on their loan of $ 180,000. The actual problem is that Ted paid $ 108,000 EVEN MORE in interest than Bill simply because his credit rating had been reduced!

Teds total mortgage interest compensated = $ 295,479.00 Bills total mortgage interest compensated = $ 187,927.00 Huge Difference = $ 107,552.00 The harsh the reality is that Ted’s credit history cost him $ 107,000… But that’s maybe not the real tragedy associated with the tale… The worst component is Bill and Ted had been brothers and both had bad credit at precisely the same time (years before purchasing their particular homes). The only distinction was Bill took action to fix their credit, while Ted don’t. Now, consider “which got Teds’ $ 107,000 in extra interest repayments?” SOLUTION: The Bank. So in retrospect finance companies love low credit scores. Clients like Ted are far more profitable than clients like his sibling Bill. All because a lowered credit rating implies they should spend a greater rate of interest and most people like Ted don’t begin to see the huge photo, instead they only target…

The MONTHLY Payment they could afford.

Financial institutions love men and women like Ted because they make hundreds of thousands off them. Will you turn out to be like Ted and throwing out over $ 100,000 in interest repayments on your house? Ideally perhaps not… since we have covered why financial institutions love low credit scores… let us discuss why Credit Bureaus love all of them as much (or even more). “the reason why credit reporting agencies enjoy minimal Credit Scores…” If you ask 10 Us citizens regarding the street… “how can credit agencies generate income?” You’ll invariable have the exact same response all 10 times: “By attempting to sell credit file needless to say!” While this response is true, it’s not… the complete truth. The stark reality is that credit agencies make the almost all their funds offering private information, perhaps not running credit history. Within the exemplory instance of Bill and Ted one doesn’t have to be smart to understand that Ted is a more lucrative customer towards lender after that Bill, because Ted has to pay an increased rate of interest because his credit score. The reason being Ted is really what’s called…

“A SUB-PRIME Borrower” Since sub-prime consumers are far more profitable consumers because they spend greater interest rates, there was a thriving business for credit reporting agencies to market lead data to lenders. Keep in mind, credit agencies result in the BULK of their funds NOT by offering credit history but by offering personal information. And, the one thing much more profitable than selling information that is personal, is when it is possible to offer that exact same information that is personal, over and over to, several clients. Let’s summary with only an example…

“TRIGGER Leads” sometime right back the credit reporting agencies developed an incredibly profitable item to offer to home loans labeled as “TRIGGER LEADS.” The very best way we want to describe a “Trigger contribute” to consumers, is to have them imagine they work at their neighborhood Sheriffs workplace answering the phone. After that, everytime some one phone calls and provides their title, address and contact number in order to register a police report that their house was only broken into… then they just take that information and turnaround and sell it as a “Lead” to 20 different “security alarm businesses” for them to contact the present prey about purchasing a security system due to their home. After all, you can’t find a “Hotter contribute” for property security system than a person whoever simply had their home robbed within the past 24 hours! Triggers Leads basically work the same way except they are sold to lenders. It works such as this: Joe customer would go to their local bank or mortgage broker to get pre-qualified purchasing a house. Consequently, the lending company pulls their credit along the way. The Credit Bureau see that Joe customer is searching for a loan so they really then sell their title, address and telephone number with other home loans as a “Trigger contribute” within 24 hours, so they can phone him and pitch him an improved offer. Sound interesting… It improves. In some cases the “Trigger contribute” is going to be sold 20 times within just twenty four hours. Surprised? You shouldn’t be… maybe not before you discover that “Trigger Leads” can price around $ 5 each (or more with regards to the data selects). So let us breakdown the figures real quick. Joe customer gets their credit taken in the entire process of “pre-qualifying” for a property mortgage. His private information is then sold for $ 5 as a “Trigger Lead” to up to 20 different home loans in 24 hours or less. Merely mathematics informs us that if 20 People Each Pay $ 5 for Joe’s Contact Information which is $ 100 generated off Joe’s title! Now imagine just how many “Joe’s” are produced daily because of the credit reporting agencies? Selling product sales prospects for financial loans and credit card provides is BIG business for Credit Bureaus. How many other companies have actually a database of over 200 million names they can generate income off offering repeatedly? Today, imagine WHO is the absolute most lucrative “LEAD” they could sell? One with a HIGH credit history? Or A person with the lowest credit score? The answer goes without saying. And, additionally becomes apparent the reason why the credit reporting agencies have automatic plenty of the consumer dispute procedures overseas. It’s also exactly why the credit reporting agencies demonstrate no real motivation to lessen the amount of harmful errors in credit reports with enacting stricter data management. Ultimately “SUB-PRIME consumers” tend to be more hopeless plus profitable and that is exactly why the Credit Bureaus love your low credit rating.

Jay Peters could be the creator of Credit fix Publishing and has already been posting credit fix information since 1994. For free e-book entitled “28 Credit Secrets the Banking institutions, Collections Agencies and national wouldn’t like that understand!” go to their website at: http://www.creditrepairpublishing.com

Why Banks and Credit Bureaus Really Like Minimal Credit Scores…

Most folks know having low credit scores cost more than having a high one. However, what few consumers ever find out is just how expensive their low credit score really is. Today we WON’T talk about the fact a low credit score could cost you a good job (because over 50% of employers are now running credit checks on job applicants).

We WON’T talk about the fact you could end up paying up to 40% more for your auto insurance (because most insurance companies now check credit when quoting premiums). We WON’T talk about the fact most utility organizations for Electric, Gas, Water or Cable now need a deposit before services can be turned on simply because of a low credit score.

We WON’T speak about the other FIVE ways a low credit score will cost you cash and make life more difficult every single month.

No… today we’re going to discuss about the one way a low credit score will cost you a fortune and why the banks and credit bureaus love your very low credit score (if you choose to do nothing about it). This one factor of credit if not addressed will cost the average American over $ 100,000.

Even worse, it can cost the regular mortgage broker or loan officer over $ 100,000… each and every year. The saddest part of all? The banking institutions and credit bureaus win if you choose to do nothing due to the fact it’s your loss and your loss IS their gain. Let us explain…

We all realize the largest purchase a consumer will make in their lifetime is their home. As a result, the biggest amount of interest ever paid in a consumers’ lifetime will be on the loan, for that household. Again, most consumers know with a low credit score they’re going to pay a higher interest rate on that loan.

However, few consumers ever study the REAL amount that increased interest ends up costing them over the life of the mortgage. After all, the standard American Consumer now lives in a world where their only focus when financing anything, is all about…The MONTHLY Payment.

This type of thinking feels good in the short run but becomes high-priced in the long run. Let’s look at some factual numbers as to why with the account of Bill and Ted.

Bill and Ted both bought homes in the same neighborhood, on the same street and for the same price. Bill had a high credit score and borrowed $ 180,000 to purchase a 4 bedroom 3 bath home. Because of his higher credit score he got a 30 year fixed rate loan at 5.5% interest. Here’s what Bills loan looked like:

His loan amount was $ 180,000. His interest rate was 5.5%. This gave Bill a month-to-month payment of $ 1022.02. His payments over 30 years totaled $ 367,927.00. His interest paid over the term totaled $ 187,927.00 (Of his $ 367,927 in total payments… $ 187,927 went to interest).

Bill paid for his home twice after interest, but don’t cringe until eventually we’re done talking about Ted.

Ted had a lower credit score and borrowed $ 180,000 to purchase a 4 bedroom 3 bath home on the same street as Bill. He got a thirty year fixed loan as well, but because of his reduced credit score his interest rate was 8.0% instead of Bills 5.5%. Here’s what Ted’s loan for the exact same $ 180,000 loan looked like:

Ted’s loan sum was $ 180,000. His interest rate was 8.0%. This gave Ted a monthly payment of $ 1320.78 (about $ 300 more per month than Bills). Ted’s payments over 30 years totaled $ 475,479.00. Ted’s interest paid over the term totaled $ 295,479.00

The dilemma is NOT that Ted paid over $ 295,000 in interest on his loan of $ 180,000. The genuine concern is that Ted paid $ 108,000 MORE in interest than Bill because his credit score was lower!

Teds total home loan interest paid = $ 295,479.00
Bills total home loan interest paid = $ 187,927.00
Difference = $ 107,552.00

The harsh reality is that Ted’s credit score cost him $ 107,000…But that’s not the actual tragedy of the story.. .The worst part is Bill and Ted were brothers and both had negative credit at the very same time (years before buying their homes). The only distinction was Bill took action to repair his credit, while Ted didn’t.

Now, ask yourself “Who got Teds’ $ 107,000 in extra interest payments?” ANSWER: The bank.

And that’s why banking institutions love low credit scores. Customers like Ted are far more rewarding than prospects like his brother Bill. All because a lower credit score means they have to pay a higher interest rate and most people today like Ted don’t see the big picture, as an alternative they only focus on…The month-to-month Payment they can afford.

Banks really like individuals like Ted simply because they make millions off them. Will you end up being like Ted and throwing away over $ 100,000 in interest payments on your home? Hopefully not…

Now that we’ve gone over why financial institutions enjoy low credit scores… let’s talk about why Credit Bureaus appreciate them just as much (if not more).

If you ask ten Americans on the street… “How do Credit Bureaus generate income?” You will invariably get the same answer all 10 times: “By Selling Credit Reports of Course!”

While this reply is true, it’s not… the whole truth.

The actuality is that Credit Bureaus make the bulk of their income selling personal information, not running credit reports. In the example of Bill and Ted one doesn’t have to be smart to realize that Ted is a more rewarding customer to the bank than Bill, mainly because Ted has to pay a greater interest rate due to his credit score. This is due to the fact Ted is what’s known as…”A SUB-PRIME Borrower”

Since sub-prime borrowers are more rewarding customers simply because they pay higher interest rates, there is a thriving business for Credit Bureaus to sell lead data to Mortgage Lenders.

Remember, Credit bureaus make the BULK of their money NOT by promoting credit reports but by selling personal information. And, the only thing more lucrative than selling personal data, is when you can sell that exact same personal information, over and over to, multiple clients. Let us wrap up with just one instance…”TRIGGER Leads”

A while back the Credit Bureaus came up with an incredibly worthwhile product to sell to mortgage brokers called “TRIGGER LEADS.” The finest way we like to explain a “Trigger Lead” to consumers, is to have them imagine they work at their local Sheriffs office answering the telephone.

Then, each and every time someone calls and gives their name, address and phone number in order to file a police report that their house was just broken into… they then take that info and turn around and sell it as a “Lead” to 20 different “Home Security Companies” so they can get in touch with the recent victim about purchasing a security system for their home.

After all, you can’t locate a “Hotter Lead” for a home security system than a person whose just had their home robbed within the last 24 hours!

Trigger Leads basically work the same way except they’re sold to mortgage brokers. It works like this: Joe Consumer goes to his local financial institution or mortgage broker to get prequalified to buy a home. As a result, the lender pulls his credit in the process.

The Credit Bureau see that Joe Consumer is shopping for a loan so they then market his name, address and phone number to other mortgage brokers as a “Trigger Lead” inside of 24 hours, so they can call him and pitch him a better deal. Sound interesting? It gets better.

In some cases the “Trigger Lead” will be sold twenty times in less than 24 hours. Shocked? Don’t be… not until you discover that “Trigger Leads” can cost around $ 5 each (or more depending on the data selects).

So let’s break down the numbers real fast. Joe Consumer gets his credit pulled in the course of action of “prequalifying” for a home mortgage. His personal data is then sold for $ 5 as a “Trigger Lead” to up to 20 distinct mortgage brokers within 24 hours. Simply math tells us that if 20 People Each Pay $ 5 for Joe’s Contact info…that’s $ 100 created off Joe’s Name!

Now imagine how many “Joe’s” are created each day by the Credit Bureaus? Selling sales prospects for loans and credit card offers is large business for the Credit Bureaus. How many other businesses have a repository of over 200 million names they can make income off selling over and over? Now, imagine WHO is the most worthwhile “LEAD” they can sell?

A person with a higher credit score? Or…A person with a very low credit score?

The answer is obvious. And, it also becomes obvious why the Credit Bureaus have automated so much of their consumer dispute processes overseas. It’s also the reason why the Credit Bureaus have shown no real incentive to lessen the number of harmful errors in consumer credit reports with enacting stricter data management. In the end “SUB-PRIME Borrowers” are more Determined and more profitable and that’s the reason why the Credit Bureaus appreciate your minimal credit score…

Jay Peters is the owner of Zodiac Publishing, which developed the “Credit Repair Intelligence System”, giving you the solution to aid you with your need to understand credit scores. For additional free reports and videos with distribution rights please visit their website and learn about credit bureaus.

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