Why Late Payments Haunt You For 7 Years Contact Less Payment With Credit Cards Refinance Your Mortgage Rate Unless You Re A Woman A Loan For Debt Consolidation Allows You To Pay Several Creditors With One Simple Payment
Did you ever wonder why a negative item has to stay on your credit report for 7 years? This question has been circulated for many years, and no one was able to give an answer other than what is stated in the Fair Credit Reporting Act (FCRA). I always wondered what the answer was myself, but was never satisfied just knowing that someone just decided to use the magic number 7.
Well, upon research I think I found out why creditors, banks and other companies you do business with keep an item an your credit report for 7 years.Taken from the bible:
[ The Year for Canceling Debts ] At the end of every seven years you must cancel debts.
(This law was put into effect to help the poor) This is how it is to be done: Every creditor shall cancel the loan he has made to his fellow Israelite. He shall not require payment from his fellow Israelite or brother, because the Lord’s time for canceling debts has been proclaimed.
In the year of our forefathers, company principles were based on biblical principles. The lobbies of all government buildings and commercial building have either a biblical symbol of biblical quotes throughout the buildings.
The Bible specifically states that people are expected to pay their debts. Religion has played an important role in the history of the United States. Many of the original immigrants that arrived in America came searching for religious freedom and many of the immigrants today come to America for the very same reason.
The Declaration of Independence states that certain unalienable human rights originate from God. The First Amendment protects the freedom of religious expression for every American and established the separation of church and state. Since the founding of America, religious institutions have been at the forefront of many political movements. Religious groups fashioned and sustained movements to promote women’s rights, the abolition of slavery, prison reform, protections for workers, alcohol prohibition, civil rights, and international peace. However today we see many people fighting against the views and laws put in place by our forefathers that founded this great nation.
So the next time a creditor tells you that a late payment has to remain on your credit report for 7 years, you will know how they arrived at that number.
An embedded radio chip in credit cards could change the way we use our plastic friends when making purchases in retail establishments. The magnetic strips we’ve become accustomed to on the backs of our credit cards are sharing the small surface area with something called “radio frequency identification”, otherwise known as RFID, and may someday make “swiping” credit cards a thing of the past. The RFID system would let credit card users hold their card within an inch or two of the card reader to make a purchase- similar to the EZPass for the NY State Thruway, or the gas pumps that accept special key chains at the sensor to process your payment. You would no longer hand your card to the cashier, there would be no swiping to read the magnetic strip on the back of your card, and therefore, it would be considered contact-less payments.
Consider the television remote control. It magically changes the channels and adjusts the volume from across the room- all without contact with the television. That same technology can, and has already been used to power your credit card payments when shopping!
There are currently a few card lenders trying out these contact-less credit cards, including some of the larger banks; Key Bank, Wells Fargo, Bank of America, Chase, American Express and Citibank, mainly in the cities of New York, Connecticut, Atlanta and Denver. There are over 90 million RFID credit cards in use by Chase customers alone, using a technology Chase has labeled “Blink”. If you have a Chase credit card and would like to use the “Blink” system for contact-less payments to try it out, you can do so even if you are not in one of the four pilot cities- just call customer service and request one.
At this time, there are about 30,000 out of over 5 million retail locations throughout the United States where a contact-less credit card would work. It’s a small number compared to the number of potential merchants who may someday be accepting contact-less payments; but the number is expected to go up as more banks issue cards with the radio chips embedded into the plastic.
Many people might argue that the magnetic strip system was working just fine, and if “it ain’t broke, don’t fix it”, right? What’s the big deal about contact-less payments? Speed, of course. In a time when everything is rushed, and people are constantly sprinting from one activity to the next, speeding up transactions benefits both the consumer and the merchant. In places of high-volume sales transactions, like fast-food retailers, sports venues, movie ticket counters and public transportation, writing checks, swiping credit cards and counting out cash takes quite a bit of time. You’ll notice most of these locations often have long lines of people waiting to pay. With a contact-less credit card, the cardholder would flash their card to the reader and if the transaction is under $25, they wouldn’t even have to sign a receipt. Visa’s director of corporate relations, Elvira Swanson states that the contact-less credit card purchases are about 25% faster than cash transactions.
The radio frequency cards might also help consumers who have credit cards with magnetic stripping that has been damaged. It can be a highly embarrassing experience for consumers who have their credit card declined, particularly when they know there is available funds on the card. With the radio frequency, contact-less payments option, the strip could be rubbed completely off the card and you’d still be able to make your purchase.
Behind many mortgages, there are two people. A man and a woman. While both of their names are on the paperwork, one of them never gets involved with the finances more than that.
This person never signs the check that goes out monthly to the mortgage company. Couldn’t tell you what the mortgage balance is. Isn’t sure what happens when the property taxes come due. And hasn’t a clue about the homeowner’s insurance (we have some, right?).
More often than not, this person is the woman. For some women, ‘finances’ is a dirty word.
If you are the woman in your household and you don’t even know what the interest rate is on your mortgage, it’s time to get involved. And here’s why.
* You need to know for yourself where your food and shelter are coming from.
* You are a role model to your kids.
* You need to get financially educated so you can help YOUR mom when she needs you to.
* This world isn’t heaven…when the unthinkable happens (and some version of it probably will), you need to be prepared as best as you can.
* You can’t believe how good you’ll feel when you learn to be in (better) control of your finances.
At this point you may be feeling overwhelmed. That’s good! Because for many women, the feeling of overwhelm is a large part of what keeps them from getting involved with their family’s finances. Now that you know that fact, you can do something about it. For starters…
* does your mortgage need refinancing? It won’t take you much research to discover this one. Talk to your spouse or pull out your mortgage paperwork. What is the current rate? What type of mortgage do you have? Do a search online for ‘mortgages rates’ and you’ll find a lot of information to get you started. Aim for learning enough to be able to have a reasonable conversation about the topic.
* what types of insurance do you have? Simply pull out a piece of paper and list all the insurance policies your family has. Identify each type of insurance (life, auto, home, etc.). Then do an online search on these insurance types and start reading. Look for informative articles, not insurance advertisements. If (when) you get confused, sit down with your spouse and ask questions. Or call up your insurance agent and make an appointment to talk. It’s the agent’s job to make sure you understand what you’re paying for.
* do you have a household budget? For our discussion, you don’t need to even worry if you are staying within your budget. Just play with the numbers and get comfortable knowing where your family’s money is going. You are building awareness and understanding, not training to be an economics professor.
* do you have a will? How can you find out? Focus on asking questions one at a time and finding the answers to them. This will avoid a lot of overwhelm.
* go to the library and pick up a copy of any of Suze Orman’s books. Read and absorb.
That’s not so scary, is it?
Do yourself a huge favor and learn one or two new things each week about the financial world. It’s a decision you will never regret and one that can have significant impact on the rest of your life as well as your family’s life together.
Just take it one step at a time.
Paring Down Payments
A Debt consolidation loan is the creation of one new loan for the purpose of paying off all other current loans and credit card debts.
A loan for debt consolidation allows you to pay several creditors with one simple payment. A debt consolidation is considered a personal loan.
The primary purpose behind debt consolidation borrowing is to lower your interest rate while providing the debtor with a monthly payment she or he can afford. It also prevents an adverse affect to the debtor’s credit rating as well as keeping assets from risk.
A debt consolidation loan may be well advised for someone who is having a difficult time making monthly payments on current loans that carry a high rate of interest. The additional benefit of debt consolidation is that the consolidation eliminates the debtor’s contact with the various creditors. This stops collection calls and correspondence.
What you’ll need to qualify for a loan for debt consolidation:
* A written budget, showing each month’s expenses and income.
* Proof that you have a steady source of income adequate for the repayment of the debt consolidation loan. Pay stubs and/or tax forms would suffice.
* You may need proof of collateral, such as home equity documents or car title.
* You might also need a co-signor if your credit is not adequate.
You can pay off a wide variety of debts and loans with a debt consolidation arrangement. Eligible bills include medical, credit card, retailers, personal loans, student loans and even checks returned for insufficient funds.
Before considering a debt consolidation there are several factors you should weigh. They are:
* Fees involved in consolidation. While a small fee is common, reputable debt consolidation firms will not claim to reduce the amount of debt you owe nor will they charge you a substantial upfront commission to do so.
* The consolidation interest rate. What you want is a fixed rate loan and a rate that is lower than the average rate of your current debt.
* Consolidation loan payments. You’ll want a monthly payment that is lower than the combined payments of the current debt, although this should not be accomplished by any considerable lengthening of the repayment time.
* Whether your credit rating will be negatively affected. If the consolidation firm is not clear on this, go elsewhere.
As part of your debt consolidation loan consideration you’ll want to look realistically at your total debt, determining exactly the amount you’ll need to borrow for consolidation. You should also contact all lenders and see if any will offer a settlement (keeping in mind that payoff off a settlement figure rather than total debt may negative affect your credit rating.)
Your next step would be to put down on paper your monthly budget, including all your expenses as well as your income. Do not neglect to give yourself some leeway – a small emergency or miscellaneous cost figure. Take a good hard look at what you can afford to repay if you borrow for consolidation.
Debt consolidation advantages:
* You can save money by decreasing the interest rate you are paying, which in turn decreases your monthly debt consolidation loan payment.
* You will only have one loan to worry about paying each month.
* You’ll only have one creditor to focus on, which means the others will not be contacting you.
Debt consolidation disadvantages:
* You’re probably going to be extending the time period in which you are paying your debtors, thus increasing the total cost over time.
* You may have to offer your home or your vehicle or other significant properties as collateral. This puts them at risk should you default..
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