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Bill H.R. 3621 The Comprehensive Credit Act of 2020

The House passed Ayanna Pressley’s credit score reform bill. Here’s what it would do.

"American families are finding themselves trapped in cycles of debt, simply for trying to afford basic needs like healthcare and education."

Congresswoman Ayanna Pressley speaks on the House floor in support of H.R. 3621 – the Comprehensive Credit Rating Enhancement, Disclosure, Innovation, and Transparency (CREDIT) Act of 2020, legislation she sponsored to affirm the right of all consumers to a fair and transparent credit reporting process.

Rep. Ayanna Pressley says she is “thrilled” that the House of Representatives passed her bill to reform the credit report system, though the legislation’s future in the Senate is unclear.

The House approved the Comprehensive Credit Reporting Enhancement, Disclosure, Innovation, and Transparency (CREDIT) Act on a mostly party-line vote Wednesday afternoon.

Pressley — who has championed often-arcane financial reform bills during her first term in Congress — says the legislation would address a “fundamentally flawed” system that can impede upward economic mobility in a country where “our credit reports are our reputations.”

“When credit reports determine where you can live, work and how much you will have to pay for everything from a car to a college degree, consumers deserve a system that ensures equity, transparency and accountability,” the Massachusetts congresswoman said in a statement. “American families are finding themselves trapped in cycles of debt, simply for trying to afford basic needs like healthcare and education.”

2020 is your year for a better credit score

There’s no more room for excuses. Either we want to live a life without debt or with it? The choice is yours but the rewards with better credit are life changing. Schedule your free credit consultation today here

How The Economic Works

Economics 101 -- How the Economic Machine Works.

A Economics 101 -- "How the Economic Machine Works." Created by Ray Dalio this simple but not simplistic and easy to follow 30 minute, animated video answers the question, "How does the economy really work?" Based on Dalio's practical template for understanding the economy, which he developed over the course of his career, the video breaks down economic concepts like credit, deficits and interest rates, allowing viewers to learn the basic driving forces behind the economy, how economic policies work and why economic cycles occur.

To learn more about Economic Principles visit: http://www.economicprinciples.org.

Understanding the economy in 10 easy steps

The Reserve Bank of Australia's decisions about the cash rate are not just about setting the interest rate for mortgages. The economy is not controlled by one set of numbers but reviews a variety of factors.

It helps to understand the various signals that experts look for when making decisions that will ultimately affect your pocket book. For most households, key indicators that affect your daily life the most are interest rates, inflation and unemployment.

Staying abreast of the economic signals can assist you to make wise financial decisions and not get caught out.

Here are my top 10 basic economic factors worth understanding:

 

1. Cash rate

The cash rate also called the official interest rate, and it is the interest rate off which all borrowing is based. The rate is controlled by the Reserve Bank, though technically it is the rate the banks charge each other for overnight borrowing, to maintain positive balances with the Reserve Bank. When the economy is improving, the Reserve Bank raises interest rates to slow the economy; when the economy needs some stimulation, interest rates are reduced to low levels such as today's 2 per cent. The Reserve Bank uses the cost of money to control demand.

2. Inflation

Inflation is the rising cost of goods and services. The Reserve Bank uses the cash rate to keep inflation within the bounds of 2-3 per cent. The idea is that when money is cheap, we'll spend a lot and prices will rise; when interest rates are high, we won't spend so much and prices won't rise so fast. Inflation is currently 1.7 per cent – don't expect a rate rise soon.

3. GDP

The growth of gross domestic product (GDP) measures how fast the economy is growing. GDP growth is like a national scorecard and is currently around 3.0 per cent, above the global trend.

4. Global growth

The Reserve Bank looks at global growth because it defines the health of our broader market place. The International Monetary Fund put global growth at 2.4 per cent in 2015 and forecasts 2.9 per cent for this year.

5. Labour market

Strong employment is essential when you control the economy with interest rates. Banks won't lend to those with no job and economic confidence is weak with high unemployment. The Australian unemployment rate is currently 6.0 per cent; in comparison, in Canada it's 7.2 per cent and in the UK it's 5.1 per cent.

6. Exchange rate

The current "low" exchange rate of the Australian dollar against the US dollar is more a return to trend. It makes some imports more expensive but it helps exporters.

7. Industrial v services economy

The RBA refers to the "mining economy" and the "non-mining economy" (all industries other than mining). Economic growth has traditionally been based on the mining industry in Australia, which is currently not experiencing growth. However, Australia has seen recent growth in the non-mining sector. This economic transition matches the recent Chinese shift from industrial to a services economy.

8. Household consumption

Household consumption equals consumer confidence in buying and selling goods and services. It is currently strong.

9. Balance of trade

This is simply the difference between how much we export and how much we import. Every economy would love to export more than it imports and Australia usually hasn't. Since 1971 our normal state is to have a trade deficit.

10. Business investment

One of the big stimulants for not only the economy but also the jobs market, is business investment. In 2015, capital expenditure was down around 16 per cent on 2014.

Mark Bouris is executive chairman of Yellow Brick Road.

NB. This article has been altered to correct the definition of "cash rate".

 

 

 

For military consumer: Free electronic credit monitoring

Free electronic credit monitoring coming soon to the military

October 31, 2019

Staff Attorney, FTC's Division of Privacy and Identity Protection
Starting October 31, many members of the military will have access to a free tool to help spot identity theft. The nationwide credit reporting agencies – Equifax, Experian, and TransUnion – have confirmed that they will provide free electronic credit monitoring services to active duty servicemembers and National Guard members.

For details on how to sign up, go to the websites for each of the credit reporting agencies.

A credit monitoring service can alert you to mistakes or problems on your credit report that might be the result of identity theft. For example, it would tell you if there’s a new credit card or loan in your name. If you knew about that, great. But if you didn’t, that could be an early warning of identity theft.

Once you have the credit monitoring service, you will be notified by mobile app, email, or text of certain changes to your credit file. These can include changes of address, payments that are more than 30 days late, bankruptcy information, foreclosures, liens, and new accounts opened in your name.

If you find inaccurate or fraudulent information on your credit report, read Disputing Errors on Your Credit Report. If you find signs of identity theft, visit Identitytheft.gov to get started on recovery.

How to Build Credit in 5 Simple Steps

How to Build Credit in 5 Simple Steps

A healthy credit score can make life much easier and enjoyable. Unfortunately, many people don't realize how important a credit score is to getting the things they want most out of life. Like a new car or a their dream home. Missing a payment on a credit card or allowing a bill to go to collection can have long lasting effects on a credit report. Negative marks on a credit report can cost several points and when it comes to a credit score. Every point counts. It is time for everyone to learn how to build credit again and achieve those dreams that they had years ago.

Here are Ebony's 5 tips to rebuilding credit:

1st Tips

-Make a conscious effort to pay all bill on time every month, even if it is only the minimum balance. If it's impossible way to make the payment, call the creditor and ask for an extension. A five to 10 day extension may be granted if a promise to pay is given usually with a checking account number or debit card number.

2nd Tips

-When thinking about how to build credit, consider opening a secured credit card to begin the rebuilding process. Charge only what can be paid off within a month or two. Avoid charging more than 30 percent of the total credit line in a single month. Meaning, if the card has a $300 credit line, do not charge more than $90 in a single month. Fees and interest must be considered.

3rd Tips

-Do not apply for numerous new accounts within a short period of time. Every hard inquiry negatively impacts a credit score. Creditors view it as a bit of a sign of desperation and will hesitate granting a new credit line. Stick with the current cards presently open and work at establishing a positive payment history.

4th Tips

-When rebuilding credit, it is important to stay informed of any changes on a credit report. A credit report should be pulled every six months to check for any negative marks as well as movement on the credit score. Ideally, if a person pays each of their accounts on time every month and does not have any negative remarks reported, the credit score should start climbing upwards. If there are unwarranted negative marks, take immediate action to have them removed.

5th Tips

-After 12 months of paying bills on time and carefully managing open credit lines, it is a good time to apply for an unsecured credit card. Try working with the company who holds the secured credit card. Make the call and ask to be switched to an unsecured card. If it isn't possible, only apply for one card through another bank.

It is possible to recover from past credit mistakes. For those who want to know how to build credit, follow these five simple steps and remember patience is of utmost important. Good things do come to those who wait. A damaged credit score does not have to be permanent. A little diligence and patience is all that is needed to begin the rebuilding process.

For more Credit Score Improvement information you can check: Blog Sector.

5 Easy Ways To Find Home Loans for Bad Credit

5 Easy Ways To Find Home Loans for Bad Credit

For those who dream of owning a home, but have less than perfect credit to Find Home Loans, there are still options. There are several creditors who offer home loans for bad credit. While these loans do not typically have prime interest rates, the loans make it possible for everybody to fulfill the American dream of owning a home. Once a person's credit has been built up, refinancing is always an option. Here are 5 tips for finding a home loan with a fair to good credit score that doesn't qualify for prime rates.

· It is crucial every person checks their credit score before applying for any loan. Taking the time to dispute discrepancies on a report is an excellent way to add a few points to a credit score, which will ultimately increase the chance of being approved for a loan.
· Check around and research any bank or agency that offers home loans for bad credit. There are too many shady companies willing to charge a small fortune in fees to those who feel they cannot get a loan any other way. Check with the Better Business Bureau, the internet and friends and family members who have dealt with a particular bank.
· Check with local and state agencies that specialize in home loans for those who would not otherwise qualify for a standard loan. FHA loans are an option as well as loans for homes that are in rural areas.
· Make a concerted effort to come up with a substantial down payment. Many lenders will underwrite home loans for bad credit with a 20 percent down payment. Borrowed down payments are acceptable. However, the money needs to sit in the bank for at least three months.
· Check with a credit union. Local credit unions are more apt to lend to their account holders who are looking to buy a home in the area.

While shopping around for a loan, it is imperative a person makes a concerted effort to increase an existing score. Every point helps. Learn more about what needs to be done in order to do this. If it is proving difficult to obtain a loan in most markets, it wouldn't hurt to ask a trusted friend or relative to cosign the loan.

Find Home Loans for bad credit are out there and many banks provide them. It just takes a little dedication and these five tips to find the best loan possible.

Credit Cards For Bad Credit: 5 Things You Should Know

Credit Cards For Bad Credit: 5 Things You Should Know

People who have bad rating are likely hoping to rebuild their credit score. There are many different reasons for damaged credit, but there is always a way to rebound. One of the best ways to begin the rebuilding process is to open a new loan line. Fortunately, there are credit cards for bad credit. Although these cards may look good on the surface, it is important to do some investigating before applying for one of these cards or accepting any offers. People with scores below 550 are likely to have very limited options. Almost all banks will require some kind of deposit or monthly fee before granting a credit line.

5 Things You Should Know

1st Thing

-Before applying for any card, get informed. It is important everybody knows their credit score. Do not be bullied into high interest rates, ridiculous monthly fees or a steep deposit. Those who know their credit score will be able to bargain for a better rate.

2nd Thing

-Only take a card that will report payment history to the major credit bureaus. This is crucial to the reestablishing of one's credit score. Regular payments are one of the fastest ways to rebuild poor credit as well as establishing a solid credit history. However, if the bank does not report the payments the credit line will not help the credit score.

3rd thing

-Once a credit line has been accepted, it is important to keep the balance low. Credit scores are negatively impacted by cards that have high balances. It is something referred to as debt ratio. Future lenders will be less likely to lend to those who have credit cards near the limits.

4th Thing

-After a person has had one of the credit cards for bad credit for at least a year and all payments have been made on time, it is time to apply for another card. Apply for a card that is not secured and has a lower interest rate. Keep in mind; the best interest rates are reserved for scores above 700. It may take a little time to get there, but with a dedicated approach to rebuilding a credit score, it can be done.

5th thing

-Weigh the options presented carefully. Look for a good balance of monthly fees and interest rates. Do not be fooled by a low interest rate and a high monthly fee or vice versa. Avoid cards that charge high interest rates and exorbitant monthly fees or annual fees. Often times cards will be offered with a low credit limit that is ate up the first month with an annual fee and a high interest.

Each person will have to choose the right credit card based on their own needs and current credit scores. Credit companies are naturally a little leery about extending credit to somebody who doesn't have a proven track record. It isn't anything personal, it is just business. By using these tips, a person will be able to make an informed decision about what credit cards for bad credit will work for them.

For more helpful blog: Check Blog Section

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