The National Bureau of Economic Research said today that the U.S. has been in a recession since December of 2007. They said that the massive decline in jobs in 2008 was one of the key reasons they decided to state why the recession started last year. They estimated that employers have cut jobs by 1.2 million. 

In a statement, White House Deputy Press Secretary Tony Fratto said that even though the recession is now official, it is more important to focus on the steps being taken to fix the economy.

“The most important things we can do for the economy right now are to return the financial and credit markets to normal, and to continue to make progress in housing, and that’s where we’ll continue to focus,” he said. “Addressing these areas will do the most right now to return the economy to growth and job creation.”

So, if you are in need of an economic stimulus package, look into credit repairing your credit. It’s one of the biggest factors lenders look at when determining your risk. Your credit score will also determine your loan rate. The lower the score, the higher the interest rate. You may be able to save hundreds of dollars a month by avoiding high interest rates on your credit cards, auto loans, and home loans. 

To read more, visit: 

http://money.cnn.com/2008/12/01/news/economy/recession/index.htm?postversion=2008120112

Question

hi well ihave three credit cards and i pay on time never late and I also have a mortage and i always pay ontime never late but my credit score stays below 600 no matter what i do it never seems to up

Lisa D.

Answer

Lisa

Congrats on paying your bills on time.  This is very important for maintaining and building positive credit.

There are other factors that go into calculating your credit score.  Here a few things to check…

1) Monitor your credit.  Make sure you or no one else is pulling your credit too often.  Inquiries can lower your credit score.

2) Make sure everything on your report is accurate.  If it is not, dispute these items with each of the credit bureaus.

3) Make sure you have available credit showing on your accounts.  Having your accounts “maxed out” with lower your score.

4) Make sure that if you have old accounts on there, they are paid off.  An old collection or judgment could bring down your score.

Check on these 4 things and keep maintaining positive credit.  Your score should continue to go up over time.

Thanks

Candice

Question

I am overwhelmed in credit card debt and would like to try the debt settlement.  A company called Zwicker and Associates has already taken over my Discover card.  What can they do to me?  Is debt settlement a good idea?

Julianna H.

Answer

Julianna-

Debt settlement is usually a good program for old unpaid collections, charge offs, judgments or tax liens.

Usually, in the cases I just listed, you can get a 40 to 60% reduction in the balance that you owe.

There a few pitfalls to be aware off.

1)      The remaining balance that you do not pay on your settlement may be considered income by the IRS and is taxable as ordinary income.

2)      Your credit report will be updated as a “settlement for less than full balance” which can be a red flag for future creditors that you may apply for new credit with.

3)      Lastly, some settlement companies will take monthly payments from you until you have enough to equal the settlement amount.  Be aware that these monthly payments are going to the settlement company and not your creditors.  This means that the creditors still have the right to attempt to collect the debt including garnishing your wages, getting a judgment or seizing your assets.

Let us know if we can be of any assistance finding a reputable partner for you.

Candice

Why would an insurance company care about credit reports? The answer is actually simple but definitely controversial. Insurance companies want to determine whether you should have a low rate or a high rate on your insurance. In fact a study referenced in the below article actually cites that 92% of the largest auto insurance firms used information in credit reports to write new policies and 52% used it to determine rates.

Concerned by how your credit report is being used? You should be. Really, it just puts more emphasis on your credit report and ensuring it’s going to give you high marks on your credit worthiness report card. Read about insurance company and credit reports.

While legislation may take years to reverse how insurance companies can use your reports, you view your credit report in just minutes. If your not sure what’s on your credit report, check out this free trial offer to pull your credit report.