What to look for when selecting a Credit Union?
April 9, 2012
Credit unions are a great way to save money and to increase the savings rate that you might be receiving on your interest-bearing account. Unlike their commercial counterparts, credit unions typically offer free accounts with no minimum balance requirements. The benefits of a credit union go far beyond just maintaining an interest-bearing checking account. Customers of these financial institutions notice one major difference between these consumer-owned institutions and the banks with which most people conduct their financial business: better customer service. Because credit union customers are partial owners, credit unions tend to produce a higher level of customer satisfaction. People who choose a credit union need to know what to expect, and they need to know what the limitations of a particular credit union are.
Many credit unions require their customers to live in a certain area or work at a certain company. Some of these institutions have expanded their customer base by allowing people who live in the community but are not necessarily attached to a particular business open an account. Customers just need to walk into the local office and ask how to open an account. The staff of the credit union will be more than happy to go over the details of how to open a checking or savings account and all the added benefits.
As long as the perspective new customer meets all of the requirements of that particular credit union, he or she can open an account. You can receive a debit card, credit cards, and checks just like at a regular bank. If you have the necessary credit, you can get mortgage loans and car loans at a lower interest rate than you may have been able to get at a commercial bank. Credit unions are exempt from paying most state and federal taxes. For that reason, they are usually able to offer higher savings account rates and lower interest rates on their loans.
Perspective customers need to pay particular attention to the fees when choosing a credit union. Many of them will reimburse ATM fees up to a certain amount. Most of them also have an ATM machine on the premises that does not require members of that institution to pay withdrawal fees. Extra charges that banks love to charge their customers, like over-the-limit fees, typically will not appear on a credit union statement of fees.
The differences in how each credit union is formed will account for the differences in policy, fees, limits, products, etc. Credit unions have many benefits that banks just don’t offer like Christmas Clubs, lower interest rates, great rates on certificate of deposits, and many more. If you are looking for a more personal experience then a credit union is probably right for you. You can find a local credit union by using the Find a Credit Union website. Before you make any financial decision, make sure you’ve done your research first.
Image: Salvatore Vuono / FreeDigitalPhotos.net
What’s the difference between a short sale and a foreclosure?
April 4, 2012
Whether a homeowner wants to do a short sale or even a foreclosure, there are a lot of differences that most are going to want to know about before deciding on one. While it may seem easy to just walk away and let the bank take the home, this may not be the best choice. To help understand the differences, let’s take a look at what the differences are and how it can affect things later on down the road.
What is a short sale?
With a short sale, the bank will agree upon a price tag that the homeowner can sell the home for. This price tag will likely be less than what the mortgage is for. Once the home is sold for this amount, the bank will call it even and the homeowner can walk away without having to owe any debts.
Using this scenario, let’s say that the home is only worth $100,000, but the mortgage note is for $150,000. The bank may tell the homeowner that they can sell the home for $100,000 and the $50,000 difference will be waived, allowing the homeowner to walk away free and clear.
What is a foreclosure?
A foreclosure is a lot different than a short sale since the homeowner will allow the bank to take ownership of the house. After a certain amount of payments have been missed, the lender will force the homeowner from the home, taking over the deed. Once the redemption period is over, the bank can then turn around and sell the home on the market. If the bank doesn’t successfully receive the amount owed on the balance of the mortgage, they can come after the homeowner to claim a deficiency judgment. While a deficiency judgment can expire over time, each state has its own laws and time periods.
Affects on the Credit Report
Since most homeowners are going to need a place to stay after this type of situation; most people often wonder how it will affect a credit score. With a short sale, the average credit score can drop 50 to 150 points. On the report, it will often state things such as “paid in full for less than agreed amount” or something such as “settled for less.”
With a foreclosure on the other hand, a credit score can drop as much as 200 points, and this will remain on the credit report for more than seven years, making it hard to get a new loan or even a new job if a company checks the credit report.
Each situation will have different affects on a credit score, different deficiencies and even tax repercussions. While it’s best to note that a short sale is always the way to go, sometimes the bank just may not agree upon a price to successfully sell. If planning to go the short sale route, always make sure that a qualified expert is hired so that there’s a better chance at closing the deal.
Advantage Credit Counseling Service offers a variety of housing counseling services. Let us help you with: Foreclosure Prevention Counseling, Pre-Purchase Counseling, and Reverse Mortgage Counseling. To set up an appointment with a certified housing counselor at AdvantageCCS, call (888) 511-2227. We are here to help!
Image: renjith krishnan / FreeDigitalPhotos.net
Main Features of the Affordable Care Act
April 2, 2012
The Affordable Care Act, or Health Care Act, was designed to put you in charge of your healthcare services, instead of allowing the insurance companies to make all of the important decisions. By utilizing some key features and regulations, it gives you the ability to choose what kind of coverage you receive, how much you will pay, and what rights you will have under that coverage.
One of the main features of the Affordable Care Act is the Consumer Assistance Program. Through this program you can receive help at a state level to enroll in coverage as well as file complaints and appeals if you are denied payment for any type of healthcare service. There may be preventative healthcare services you are eligible for that you have never known about because your insurance company did not make you aware. Consumer Assistance will provide you with this information, as well as give you a “Patient’s Bill of Rights” that helps you get informed about your rights as a healthcare consumer.
There are other important features you have the right to under the Affordable Care Act. Children under the age of 19 cannot be denied coverage because of pre-existing conditions, and you cannot have your coverage suddenly cancelled because your insurance company finds a mistake on application materials. The Act also gives you the ability to choose to see any doctor you wish, whether they are part of a network or not.
Another important aspect of the Healthcare Act is that it gives you more options when choosing the type of insurance coverage you want and need. There is a Pre-Existing Condition Insurance Plan for those that have a chronic condition or disability and were denied coverage under regular insurance options. If you are under the age of 26 and cannot get insurance coverage on your own, you may instead be able to get coverage from a parent’s insurance plan if they have a suitable type.
Seniors can benefit from the Affordable Care Act in several ways. Once again, it provides information about preventative services that can be found at little or no cost to the covered senior citizen. Those that are on Medicare and are finding trouble getting all of their prescription medications covered can find assistance with discounts and rebates as well.
It can be difficult for small businesses to provide adequate healthcare options for employees because of high costs. However, the Healthcare Act seeks to make it easier for any size company to provide proper benefits. They may even receive tax credits for providing these insurance plans.
If you have medical bills that keep adding up and you feel like you’re in over your head, call AdvantageCCS today. Our certified credit counselors will review these debts and let you know some of your options. Our Debt Management Program could help you with medical bill collection and any unsecured debt that you may have. Let us help get that debt monkey off of your back!
Image: Michal Marcol / FreeDigitalPhotos.net
Medical Bills and Debt Collection Rules
March 28, 2012
Going to a doctor or emergency room for needed treatment is gradually becoming more expensive. Many individuals and families are finding that even after insurance coverage pays for many of the costs, high medical bills are still sent to the home. It is not always easy to manage payments on the bills and delinquent accounts often end up going to collection agencies within five to six months of the first missed payment.
The Fair Debt Collection Practices Act:
Medical bills fall under the Fair Debt Collection Practices Act, or FDCPA, and must adhere to the same collection rules that regulate other agencies. The collectors are allowed to send mail and make phone calls reminding consumers of the bill and asking for them to pay the expense.
According to the guidelines in the FDCPA, collectors are not allowed to harass consumers, give inaccurate information about the consumer, make false claims of any kind, saying that consumers will be arrested or use any unfair practices. Any action that is not fair to the consumer or is viewed as threatening is not allowed.
Any medical bill collector who is told in writing not to call the consumer is no longer allowed to make calls. If the consumer tells the collection agency over the phone or in writing not to call their work number, the agency must only call the home phone after 8:00 am and before 9:00 pm.
The FDCPA has very strict regulations on what is allowed and what is not. Consumers who have a medical bill that goes into delinquency still have rights to privacy and fair practices. Collection agencies are not allowed to harass consumers or anyone who is related to them. Read up on the FDCPA and know your rights!
Action for Harassment or Other Inappropriate Actions:
Any time a collector for a medical bill breaks the strict laws set forth in the FDCPA, consumers have the right to sue the company. Consumers who have suffered losses, such as unfair wage garnishment, will be reimbursed for the expense. If the case is won and no losses are noted, the collector is still fined $1,000. If several consumers decide to file a civil lawsuit against the company, it is possible to obtain as much as $500,000 if the case is won.
Medical bills are able to go into the collections process. Fortunately, the collectors must abide by the Fair Debt Collection Practices Act and are not allowed to harass or treat consumers in any way that is unfair.
If you have medical bill debt or any kind of unsecured debt, give AdvantageCCS a call today for a free credit counseling session. During the credit counseling session, a counselor will work with you to get a clear understanding of your total financial situation. This is important because it helps the credit counselor determine different options or steps you may take to better manage your money and get your credit under control.
Image: vichie81 / FreeDigitalPhotos.net
Credit Management Tips and Advice
March 26, 2012
Your credit score is not something you can instantly fix and then see immediate results. Credit scores are like your driving record with all of your past mistakes clearly visible. The credit bureaus take into account years of past behavior, not just your present actions. Many negative or bad marks could stay on your credit history for up to 7 or 10 years and affect your credit score.
In addition to making the right decisions, you also have to be consistent. A few easy steps can push your score in the right direction. We’ll share some tips and advice that could help you manage your credit and hopefully help increase your credit score.
Tips:
Set your financial goals first and then plan your big purchases ahead of time.
Figure out if you can really afford it BEFORE you buy it.
Don’t buy it and then worry about how you’ll pay for it later.
Track your credit expenses and spending habits.
Rubber band a piece of paper around your credit cards. Write down the amount you charge every time you use the card and total the balance.
Plan your credit expenses into your budget so you can afford to pay off the bill in full every month.
Keep your eyes on your credit account terms. Don’t use credit cards with really high interest rates. It’s not worth it.
Know your interest rates, due dates, late fee amounts and over the limit fees.
If you’re not able to pay the balance in full, pay more than the minimum payment. Even if it’s only $10 or $20 more than the minimum payment. It will make a difference.
Pay attention to any annual fees you may have. Some credit cards like AMEX Gold will charge you an annual fee even if you don’t use the credit card.
Pay your bills on time to avoid late fees. If you bank online, set up automatic payments or reminders so you never forget a due date.
Only charge disposable items if you will pay the bill in full every month. For example: gas, groceries, toiletries, take out, etc.
Look at your credit report several times a year. If there is an error, make sure you report it to the major credit bureaus.
There is no “quick fix” when it comes to rebuilding credit. This is a process that takes time, effort and discipline. Avoid people and companies who tell you that they can help you rebuild your credit in a short amount of time. It can take up to two years to rebuild your credit to a point that you are not denied a major credit card. It can be even longer than that to be able to qualify for a mortgage with a competitive interest rate.
If you follow this advice then you are on the right path to rebuilding your credit history and making sure it stays in good standing for the future. It will take some time and you must be patient. If you are in debt now and need help with your personal finances, give Advantage CCS a call today. Our certified credit counselors are here to help you.
-
SEARCH:
