http://www.colbykluthe.com/ on behalf of http://www.justinepetersen.org/
Credit Builder Workshop @ Urban Cafe Studio
Host:
Justine Petersen
Thursday, November 5, 2009
7:00pm - 10:00pm
Location: 2815 North 14th Street
St. Louis, MO 63107
Description
Join the Justine Petersen Credit Club on NOV 5th @ Urban Cafe Studio (FREE WORKSHOP)No reservation required BUT encouraged
RSVP via Facebook or email @ kschell@justinepetersen.org
http://www.facebook.com/JustinePetersenORG
Showing posts with label Credit. Show all posts
Showing posts with label Credit. Show all posts
Monday, October 26, 2009
Wednesday, September 2, 2009
Credit report can‘t show half a mortgage
www.ColbyKluthe.com
Credit report can‘t show half a mortgage
http://www.experian.com/ask_max/max090109a.html?rss=1
Dear Experian,
My son in-law and I purchased a house together in only his and my name. Can I contact the credit bureaus and let them know that only 50 percent of that dollar amount is my responsibility? That way I would have a lower credit ratio.
- RAE
Dear RAE,
I am afraid you can‘t do that. When you sign a joint contract you aren‘t agreeing to pay half the amount. Instead, you are both agreeing to pay the full amount. By signing on the dotted line, you told the lender that if he doesn‘t pay the loan, you will – the full amount, not just half. There is no such thing as half a mortgage, because you can‘t own half a house.
The typical reason for you to share the loan obligation is that your son in-law very likely did not have a sufficient credit history or income to qualify for the loan by himself. The risk that he would not be able to repay the debt alone was too great for the lender to approve his application without the security of having you share responsibility.
You should never take signing your name on an account lightly, even when family members are involved. Whether is it for credit cards, apartment rent, phone service, or a house, it doesn‘t matter who actually uses the service. You have total responsibility for the entire amount.
Thanks for asking.
- The ”Ask Experian“ team
Credit report can‘t show half a mortgage
http://www.experian.com/ask_max/max090109a.html?rss=1
Dear Experian,
My son in-law and I purchased a house together in only his and my name. Can I contact the credit bureaus and let them know that only 50 percent of that dollar amount is my responsibility? That way I would have a lower credit ratio.
- RAE
Dear RAE,
I am afraid you can‘t do that. When you sign a joint contract you aren‘t agreeing to pay half the amount. Instead, you are both agreeing to pay the full amount. By signing on the dotted line, you told the lender that if he doesn‘t pay the loan, you will – the full amount, not just half. There is no such thing as half a mortgage, because you can‘t own half a house.
The typical reason for you to share the loan obligation is that your son in-law very likely did not have a sufficient credit history or income to qualify for the loan by himself. The risk that he would not be able to repay the debt alone was too great for the lender to approve his application without the security of having you share responsibility.
You should never take signing your name on an account lightly, even when family members are involved. Whether is it for credit cards, apartment rent, phone service, or a house, it doesn‘t matter who actually uses the service. You have total responsibility for the entire amount.
Thanks for asking.
- The ”Ask Experian“ team
Tuesday, May 26, 2009
Balances on business credit cards could impact your personal credit report
Balances on business credit cards could impact your personal credit report
Dear Max,
Do balances on my business credit cards affect my personal credit scores?
- SCO
Dear SCO,
Balances on business credit cards could affect your credit scores if your name is on the card instead of the name of your business.
If the account is in your name and you are responsible for payment, then it very likely will appear in your personal credit report. If so, the history of the account, including any payment problems, would be included in any credit score calculation Even though your business may ultimately reimburse you for the charges, you are still personally responsible for making the payments and for making them on time.
However, if the account is only issued to the business and they make the payments, there is a good chance that is would appear only on the business credit report. In that case, it would have no impact at all on your personal credit scores.
The best way to find out is to get a copy of your credit report. If you find it on your personal report, it will affect your personal scores. If it’s not there, you don’t have to worry about it.
Thanks for asking.
Maxine Sweet, VP Consumer Affairs, www.Experian.com
Dear Max,
Do balances on my business credit cards affect my personal credit scores?
- SCO
Dear SCO,
Balances on business credit cards could affect your credit scores if your name is on the card instead of the name of your business.
If the account is in your name and you are responsible for payment, then it very likely will appear in your personal credit report. If so, the history of the account, including any payment problems, would be included in any credit score calculation Even though your business may ultimately reimburse you for the charges, you are still personally responsible for making the payments and for making them on time.
However, if the account is only issued to the business and they make the payments, there is a good chance that is would appear only on the business credit report. In that case, it would have no impact at all on your personal credit scores.
The best way to find out is to get a copy of your credit report. If you find it on your personal report, it will affect your personal scores. If it’s not there, you don’t have to worry about it.
Thanks for asking.
Maxine Sweet, VP Consumer Affairs, www.Experian.com
Wednesday, April 22, 2009
Credit Builder Workshop- RSVP today!
YOU ARE INVITED TO JOIN US!
justinePETERSEN & justBIZ are offering aFREE “Credit Builder Tune Up” WorkshopThe workshop includes a 45 minute workshop on how to build credit, a credit report, and a one-on-one session with our credit educators.
rsvp- ckluthe@justinepetersen.org
When: Monday, APRIL 27th from 3pm-5pmWhere: justBIZ @Emerson Park Metrolink
15th Street & Bowman AveEast St. Louis, IL 62205
Justine Petersen
Wednesday, April 8, 2009
Law does not require lenders to report payment history
Law does not require lenders to report payment history
Dear Max,
I was told by a bank that the law requires merchants and lenders to report data related to my credit. Can you point me to where I can find this legal information?
- LUK
Dear LUK,
The person you talked to at the bank was incorrect. Merchants and lenders are not required to report information about the accounts you have with them. Reporting information is strictly voluntary.
Companies choose to report because they are reliant on information from other companies to help them make sound decisions. They recognize that it is only fair for them to share the information if they are going to receive it. Voluntary sharing of information has been the basis for credit reporting since its earliest days, when local merchants shared their lending experiences verbally with neighboring stores.
However, the law does mandate what a business must do if it chooses to report information.
The Fair Credit Reporting Act (FCRA) defines what a business’s responsibilities are if it decides to report information to a credit reporting company, like Experian. Those responsibilities include not knowingly reporting inaccurate information, updating payment information regularly and responding to disputes about the accuracy of any information within a specified period of time, among others.
The Federal Trade Commission provides a thorough description of the FCRA requirement for reporting information on its web site.
Thanks for asking.
Maxine Sweet , VP consumer affairs
www.Experian.com
Dear Max,
I was told by a bank that the law requires merchants and lenders to report data related to my credit. Can you point me to where I can find this legal information?
- LUK
Dear LUK,
The person you talked to at the bank was incorrect. Merchants and lenders are not required to report information about the accounts you have with them. Reporting information is strictly voluntary.
Companies choose to report because they are reliant on information from other companies to help them make sound decisions. They recognize that it is only fair for them to share the information if they are going to receive it. Voluntary sharing of information has been the basis for credit reporting since its earliest days, when local merchants shared their lending experiences verbally with neighboring stores.
However, the law does mandate what a business must do if it chooses to report information.
The Fair Credit Reporting Act (FCRA) defines what a business’s responsibilities are if it decides to report information to a credit reporting company, like Experian. Those responsibilities include not knowingly reporting inaccurate information, updating payment information regularly and responding to disputes about the accuracy of any information within a specified period of time, among others.
The Federal Trade Commission provides a thorough description of the FCRA requirement for reporting information on its web site.
Thanks for asking.
Maxine Sweet , VP consumer affairs
www.Experian.com
Saturday, March 7, 2009
Credit cards with low limits still can build strong credit
Credit cards with low limits still can build strong credit (www.Experian.com/askmax)
Dear Max,
Do small available balance credit cards, such as retail cards or gas cards with say $300 available balance, help or hurt credit scores, even if no balance is owed?
- IND
Dear IND,
Even accounts with small balances can help. The issue isn’t how much credit you have available, but rather how you manage the credit you have at your disposal.
You do need to be aware that some gas cards are charge cards, meaning you are required to pay the balance in full each month. Such accounts won’t hurt your credit history if they are paid on time, but they likely won’t be as positive as credit cards that are paid on time with low balances.
Credit cards allow you to revolve a balance, or carry a balance from one month to the next. Because you control how much you pay and whether or not you charge to the limit d, credit cards demonstrate even more clearly that you can responsibly manage credit. By charging a small amount on at least one card and paying the balance on time, you will show that you can handle larger amounts of available credit. Eventually you very likely will be offered accounts with larger balances.
In fact, one of the best ways to build a strong credit history is to start small and build up. That doesn’t mean you should go out and apply for a bunch of retail credit cards or gas cards. You only need a few accounts reported to the credit reporting companies.
As the positive history on those accounts grows, your creditworthiness will grow with it.
Thanks for asking.
~Maxine Sweet, VP Consumer Affairs, EXPERIAN
Dear Max,
Do small available balance credit cards, such as retail cards or gas cards with say $300 available balance, help or hurt credit scores, even if no balance is owed?
- IND
Dear IND,
Even accounts with small balances can help. The issue isn’t how much credit you have available, but rather how you manage the credit you have at your disposal.
You do need to be aware that some gas cards are charge cards, meaning you are required to pay the balance in full each month. Such accounts won’t hurt your credit history if they are paid on time, but they likely won’t be as positive as credit cards that are paid on time with low balances.
Credit cards allow you to revolve a balance, or carry a balance from one month to the next. Because you control how much you pay and whether or not you charge to the limit d, credit cards demonstrate even more clearly that you can responsibly manage credit. By charging a small amount on at least one card and paying the balance on time, you will show that you can handle larger amounts of available credit. Eventually you very likely will be offered accounts with larger balances.
In fact, one of the best ways to build a strong credit history is to start small and build up. That doesn’t mean you should go out and apply for a bunch of retail credit cards or gas cards. You only need a few accounts reported to the credit reporting companies.
As the positive history on those accounts grows, your creditworthiness will grow with it.
Thanks for asking.
~Maxine Sweet, VP Consumer Affairs, EXPERIAN
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