With the much of the country still on pause due to the coronavirus, it’s likely that you or someone you know is in need of financial relief. While banks and lenders have largely been left to determine what type of assistance they will offer (aside from what is specifically outlined in the CARES Act), many are waiving fees and offering forbearance and deferment programs to those experiencing hardship.  Here’s what a few of the major banks and lenders are doing to help. Ally Bank Mortgages: Payments can be deferred for up to 120 days and accounts will be reported as “current” to Credit Reporting Agencies (CRAs). While no late fees will be charged, interest will continue to accrue. Missed payments

Simply put, a credit limit is the maximum amount you can spend on a credit card. When you make a purchase, that amount is deducted from your credit limit and the remainder is the current amount of credit you have access to. When you make a payment, and once that payment is credited to your account, you have access to more funds – your credit limit minus your new balance. You can usually find your credit limit on any statement you receive from your credit card company, or by logging into your account online. Credit Limits and Covid-19 If you’ve recently noticed a change in the available credit on your credit card, there might be an easy explanation. While the

If the state of your credit is a top concern while the coronavirus pandemic rages on, you aren’t alone. With millions at least temporarily unemployed, financial hardship and the credit implications that could follow are a worry for many. Luckily, the three credit reporting agencies (CRAs) – Experian, Equifax, TransUnion – are providing a resource to help.  Through April 2021 you can now request a free credit report weekly from each of the CRAs to stay on top of new reporting and dispute potential errors.  Here’s How it Works Free credit reports are not a new offering. In fact, according to federal law, consumers are entitled to one free credit report every 12 months from each of the three CRAs.

Credit cards can be a powerful financial tool or a slippery slope into debt — all depending on how they’re used. This guide can help you brush up on a few key facts and learn how to reap the benefits. Ready? Let’s dive right in. How Do Credit Cards Work? Credit generally falls into one of two categories: revolving or installment. Installment credit includes mortgages and auto loans — they have a balance that is paid off in set increments (or installments) until the balance reaches zero. Most credit cards, on the other hand, are considered revolving — they come with a set credit limit that can be accessed repeatedly, as long as at least the minimum payment is made each month,

Have you been rejected for new credit or denied the best rates because of negative marks on your credit report? Then it might be time to consider repairing your credit.  Credit repair might seem complicated, but it’s actually a very broad term. Basically, anything you do — or someone else does on your behalf — to improve your credit is considered credit repair. This could include a variety of actions, like paying down debt or disputing inaccurate information on your credit report.  The truth is, whatever needs to be done to repair your credit, you are able to do on your own. If you need to clear up mistakes on your credit report, for instance, you can contact the Credit

According to the FTC, in 2019 alone there were close to 1.7 million reports of fraud in the United States, with losses totaling $1.9 billion.   From imposter scams to identity theft, scammers and thieves are constantly adapting to make sure they’re one step ahead of consumers. If you’ve fallen victim to credit fraud, or you want to ensure you don’t, you’ve come to the right place.  Credit Card Fraud Credit card fraud generally happens in one of two ways: Someone obtains your physical credit card or they obtain the information pertaining to that card and they proceed to make purchases in your name.  How Does Credit Card Theft Happen? Here’s a staggering statistic: Reports of credit card fraud in the

Credit and debt are intertwined in more ways than one. The amount of debt you carry can impact your credit score. In turn, your credit score can impact the amount of credit and terms potential lenders may offer.  The Impact of Debt on Credit  Here’s the good news: Carrying debt doesn’t automatically mean your credit is negatively impacted. In fact, it could be just the opposite – it all depends on how you manage it. Do you carry large amounts of credit card debt and pay only the minimum amount each month? Then the impact is likely negative. Do you pay off your credit card balances monthly and make all installment loan payments on time? Then the impact is likely

Whether you know the collection calls will be coming, or you’ve just been blindsided by a debt collector, the process can be undeniably intimidating. Arming yourself with a few facts about how the process works, as well as understanding your rights, can help. Let’s start with the basics. Here’s how it can work:  An account in your name has become past due and the original creditor thinks they will be unable to collect payment. (Usually when it reaches the 180-plus day mark.) The creditor sells the debt to a debt collection company, generally for a portion of the amount due. Since the debt has now switched hands, the debt collection agency is able to keep whatever they manage to collect.

Before the $2 trillion stimulus package known as the CARES Act was passed March 27, 2020, lawmakers attempted to include legislation instructing credit reporting agencies (CRAs) to pause reporting negative credit information for four months.  Ultimately the legislation did not make it into the final bill. For now, creditors are pushing to take care of the issue without legislative intervention.  One way they plan to do that is by applying a natural disaster code to information reported to CRAs pertaining to borrowers financially impacted by the coronavirus pandemic.  There are a few important things to know about how natural disaster codes work:  It is up to the consumer to notify a lender they are impacted by this public health emergency.

Credit products can come in one of two forms: secured and unsecured. Secured credit products, such as an auto loan, mortgage, or home equity line of credit, are tied to collateral that can be seized if the accounts go delinquent. That’s why getting behind on a mortgage or auto loan, for example, can lead to the borrower losing their home or vehicle. Unsecured credit products, such as most credit cards and student loans, don’t have any collateral tied to them. If they go delinquent, there’s no property for the lender to collect so the creditor will first look to collect from you. For this reason, getting approved for these products can sometimes be more challenging.  FREE TOOL: Are mistakes on

Whether you’re in the market for a new home, interested in purchasing a car, or heading to the store to grab groceries, there’s a good chance you’ll use some form of credit to complete the purchase.  Buying with credit means you are borrowing money which will later be paid back – but the amount owed and the time-frame required to pay it back depends on the type of credit it is. So knowing the type of credit you’re in the market for will help you understand how the arrangement might work.  Revolving credit A revolving credit account is one you can borrow from at any time, up to the limit set by the lender. This type of credit is paid

When it comes to getting approved for a credit card or loan – and getting the most optimal terms available – your credit plays an integral part. There are two overarching components of your credit that potential lenders will be looking at: your credit score and credit report. 

Any action you take to improve your credit can be called credit repair. Find and dispute an error on one of your credit reports? You’re working on credit repair. Learn ways to get better credit scores, including old habits to break? You’re working on credit repair.  It doesn’t matter if you’re doing this yourself or if you’re paying a company to do it for you — working to improve your credit is credit repair.

Think you have just one credit score? Think again. Read here to find out just how many credit scores you have and why it’s fruitless to try to obtain a “perfect” score.

Did you recently file a dispute on one of your credit reports? Click here for help decoding the results.