Payday Loan Quotes Blog

Shocking Statistic on Financial Literacy

2008-05-21T17:55:38Z

We just saw these statistics online and wanted to share them with our readers:

40% of Americans say they live beyond their means.
50% of Americans live paycheck to paycheck.
Only 32% of American parents talk to their children regularly about personal finance.
Only 21% of graduating high school students participate in financial literacy courses.
In 2008, students surveyed by the Jumpstart Coalition scored lower on basic financial literacy test than their predecessors in 2006.
20% of employees are unable to carry out normal work activities three days per week due to financial concerns.
43% of adults at the lowest level of financial literacy live in poverty, compared to 4% of those at the highest level of financial literacy.

Sources:
Federal Reserve: http://www.federalreserve.gov
JumpStart Coalition: http://www.jumpstartcoalition.org
National Endowment for Financial Education: http://www.nefe.org

Be sure your Payday Loan Site is Secure!

2008-04-24T19:06:23Z

Payday Loan sites are popping up all over the internet. Some are secure but many are not. In order to get a loan, you must submit important personal information such as your social security number and banking information. Therefore, you should be extra careful to use a site that is secure and encrypted.

How do I know if a payday loan site is secure?

Here's one easy way:

Look at the website URL once you are ready to fill out the form. Does the beginning have "http:" or "https:"? It is NOT secure if it is only "http:". You must have the "s" for security!

Here are some examples of secure payday loan sites:

https://www.paydayusa.org
https://www.christianfaithfinancial.com
https://www.prescottfinancial.com
https://www.additionalearning.com

Different Bureaus, Different Credit Scores

2008-04-18T00:40:34Z

Your FICO score is based on a mathematical equation. It is set up to evaluate information from your credit report and compare it against patterns of other credit users to identify your credit risk, that is, how likely it is you'll pay back loans. Scores may differ among the bureaus for three reasons:

1. Not all lenders report to all three bureaus.
2. Not all lenders report to the bureaus at the same time of the month.
3. The Fair Isaacs software for creating the credit score is different (but similar) at each bureau.

Check Credit Reports for Errors!

2008-04-17T19:43:05Z

A relatively high percentage of credit reports contain errors. These errors can lower your credit score and cost you big bucks in terms of interest rates or qualifying for an interest-only mortgage loan rather than a 30-year traditional fixed-rate, for example. Therefore, it's a good idea to check your credit report for mistakes.

Look for the following:

• Identifying information that has you mixed up with someone else's activity
• Incomplete information
• Accounts that don't belong to you
• Payments reported as late but that you paid on time
• Debts paid in full that still show an outstanding balance
• Late payments and other negative events that took place more than 7 years ago, 10 years for bankruptcy

How to Read a Credit Report

2008-04-17T00:30:31Z

Believe it or not, it's not too difficult to read a credit report. While each of the three credit bureaus uses a different format, they're all pretty cut and dry, whether you're reading it online or on paper.

Each report is separated into six sections: Personal ID Information, Credit History, Collections, Courthouse Records, Additional Information, Credit Inquiries.

Personal ID Information:
Here you'll find your name, address, Social Security number, date of birth, and employment information, including your past employers and job titles. (This information is not used to determine your FICO score.) This section also may contain your spouse's name, the name of your employer, phone numbers, and your driver's license number.

Credit History:
This section contains your credit/loan accounts. For each account, the following information is listed:

Credit Cards (Revolving Credit)
1. Account name (American Express, Visa, Mastercard, etc.)
2. Account number
3. Date opened
4. Current balance
5. Highest balance
6. Amount past due
7. Credit limit
8. Type of credit - Revolving
9. Whether it's a joint or authorized account. A joint account makes your financially responsible for paying what the other joint holder spends. An authorized user doesn't and can help build your credit history and make it possible for you to qualify for an individual account.
10. Minimum payment required
11. Last activity - This date is the last payment or last charge you made.
12. Months reviewed - how many months the account history has been reported
13. Account status - open, paid and closed, inactive, paid in full
14. Your payment history - "pays as agreed," "30 days late," "60 days late, "90 days late," "charge off" (the credit has attempted to get paid but has given up)

Installment Loans
1. Date opened
2. Type of credit (installment -- mortgage, car loan, student loan, etc.)
3. Whether it's a joint, co-signed, individual account
4. Loan amount
5. Required monthly payments
6. Amount past due
7. How much you owe
8. Months reviewed - how many months the account history has been reported
9. Last activity - This date is the last payment you made.
10. Account status - open, paid and closed, inactive, paid in full
11. Your payment history - "pays as agreed," "30 days late," "60 days late, "90 days late," "charge off" (the credit has attempted to get paid but has given up)

Collections:
This section contains any delinquent accounts reported to collections agencies during the past 7 years. It contains the following:
• Name of collection agency
• Amount owed
When you pay off your debt, get it in writing from the collection agency and send it to the credit bureaus. Make sure the collection agency does the same.

Courthouse Records/Public Records:
This section contains the following records for up to 7 years, with the exception of bankruptcies:
• Bankruptcies (up to 10 years old)
• Foreclosures
• Overdue debt from collection agencies
• Tax liens
• Garnishments
• Lawsuits
• Judgments from state and county courts
• Overdue child support payments (in some states)

Additional Information:
This section may list your former employers and your past addresses.

Credit Inquiries:
This section is divided into two - voluntary and involuntary inquiries. Voluntary inquiries are those where creditors/lenders that have accessed your credit report with your permission over the last 2 years to determine your creditworthiness. Involuntary inquiries are those made by lenders that offer you credit by mail. These inquiries, and those made by your existing creditors, don't affect your credit score. However, if you accept a pre-approved credit card offer made in the mail, or apply for credit, that acceptance will lead to an inquiry that will affect your credit score.

Get Your Credit Report

2008-04-16T23:45:22Z

Four factors help a lender determine if it will lend you money and under what terms:

1. Your credit score
2. Your employment history
3. How much debt you have compared with how much income you have
4. Your credit history

You can order a free credit report from all three bureaus every 12 months at www.annualcreditreport.com or toll-free at 877-322-8228.

If you go online to view them, you'll have to know certain information contained in them - each credit bureau asks for different information to ensure your identity. Information includes things like the name of your mortgage company, if you have one, and former street addresses. Don't worry if you get an answer wrong. You'll be given a second shot at it.

$ Tip! To get the best interest rate when applying for a loan, first determine which credit bureau has the highest FICO score for you. Next, find a lender that uses that credit bureau report.

What would you do?
Mary is offered 10 percent off all sale items if she opens a new department store credit card. She figures it'll knock off $10 from her bill, not a bad savings. Every dollar counts when you're shopping for a new car, she figures. Don't do it, Mary! Every inquiry for new credit makes creditors/lenders uneasy, and opening a new credit card account will reduce your credit score!

Know Your Credit Score!

2008-03-07T23:45:43Z

Whether or not you get accepted for a payday loan could be determined because of your credit score. To find out your credit scores, contact all three credit bureaus - Experian, TransUnion, and Equifax. While the scores likely won't be the same number, they should be close.

Note: There could be a fee for getting your credit scores.

Contact Information:

My FICO (Fair Isaacs): http://www.myfico.com
Equifax www.equifax.com 800-685-1111
Experian www.experian.com 888-397-3742
TransUnion www.Transunion.com 800-888-4213
Centralized service to obtain credit reports from all three credit bureaus:
https://www.annualcreditreport.com

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
www.annualcreditreport.com
877- FACT ACT
877-322-8228

Who's Got a Credit Score?

2008-03-07T23:41:01Z

To get a FICO credit score, you must have a credit account that reports to at least one of the three credit bureaus, and you must keep that account open for at least 6 months.
Note: As of September 2007, Fair Isaacs Corporation is changing their credit scoring software at each of the three credit bureaus. Authorized credit card account holders will no longer have a credit score. An authorized user is someone, usually a family member, who is allowed to use the account but who is not held financially responsible for payment. Permitting an authorized account has been a way for young people to establish credit. This change in credit scoring is to protect lenders from abuse in the marketplace of authorized user credit card accounts by so-called credit repair services that sell good credit card histories to those with poor histories, a strategy called "piggybacking."

Did you know? Your FICO score may be different at each of the three credit bureaus, because credit card companies may report to each one at a different time of the month and not all credit card companies report to all three bureaus.

What's a Credit Score?

2008-02-27T02:25:10Z

A credit score is a mathematical computation that results in a number that's used to help lenders determine how likely it is that you'll pay back a loan. Your score is based on how you've handled paying back loans in the past. The higher your score, the less risk you pose of paying late or defaulting, the lower your interest rate. Hence, a higher credit score makes a loan less expensive for you.

The most frequently used credit score is the FICO score, which ranges from 300-850. They are created using software developed by Fair Isaacs Corporation. Most people score in the 600-700 range. Scores above 700 are desirable. Scores below 600 are considered a financial risk to lenders and creditors. While scores may vary among bureaus, they generally represent the same credit risk.
FICO scores are based on five factors. The level of importance of each factor varies by credit profile, and your profile changes over time. In general, they're weighted as follows:
• Payment history (35%)
• Amounts owed (30%)
• How long you've have credit (15%)
• Amount of new credit (10%)
• Types of credit used (10%)

Understand Credit Scores!

2008-02-27T02:22:55Z

Credit scores are used by creditors and lenders to determine whether they will lend you money and what terms (interest rate, how much, etc.) you will be offered. Boosting your credit score will result in considerable savings - better loan terms and lower interest rates. Interest only and other subprime mortgage loans - those with less than stellar terms sold to borrowers with low credit scores or not enough money - have resulted in foreclosure for many homeowners when they couldn't afford the hiked payments.

It's Easy To Get Into Debt

2008-02-26T01:21:38Z

It's easy to get into debt - just make a few big purchases on credit and make the minimum payments. The higher the interest rate, the faster you go down into the depths of debt, taking your credit score along for the ride. But you can turn it all around -- getting started is as easy as 1-2-3!

1. Pay off or pay down your credit cards several weeks before they're due.
2. Correct any errors in your credit reports - errors are common!
3. Drop your credit card spending down to 10 percent or less of your available credit.

Reasons to Raise Your Credit Score

2008-02-26T01:17:51Z

Do you want to save hundreds or thousands of dollars on loans? Your credit score can make a big difference! The amount you pay for a big-ticket item on credit can be quite different for someone with a high score compared with someone with a low score. Consider this: As of August 22, 2007, if you had a FICO score of 760-850, the highest bracket, you'd pay $1832 for a 30-year fixed rate $300,000 mortgage loan at 6.172 percent. But if you had a score of 500-579, the lowest bracket, you'd pay a whopping $2674 for that same mortgage, which would be at 10.188 percent. That's $842 more every month, $10,104 per year! These comparisons demonstrate how costly it is to have a low credit score and how much money a high credit score can save you.
The payoffs don't stop at lower interest rates on loans - with a high credit score you'll get quicker credit approval, reduced deposits required from utility companies, and approval for apartment rentals.

Introduction - Welcome to our Blog!

2008-02-26T00:26:41Z

Welcome to the blog on paydayloanquotes.com. On this blog we will be posting all sorts of information about payday loans, repairing your credit, and understanding your FICO score. We hope you find this helpful and informative.