All Posts made by FreeScore

Effects of Long-Term Unemployment on College Students

April 2, 2012, by FreeScore

long-term unemploymentHere at FreeScore, we recently mentioned that more and more college students are now facing bankruptcies under the crushing weight of student loan debt. Many students are graduating with a whopping $25,000 in loan debt. And the bad news doesn’t stop there.

Now, long-term unemployment is complicating the situation for recent college graduates. Many are becoming prone to poor credit from deficient finances, leaving some asking, “Were those four years worth it?”

A recent Huffington Post Business article says that 35 percent of unemployed college graduates have been without a job for a year or longer. And, the long-term unemployment rate for those 25 and older is almost the same across the board—regardless of educational level. This can make keeping your credit score in check a difficult task.

If you’re one of the 35 percent of college graduates facing long-term unemployment then it’s time to get organized. Money Crashers gives some tips to help you survive unemployment, including cutting all non-essential items from your budget, reviewing and prioritizing your debt and foregoing credit cards to help pay expenses. They also recommend checking your credit accounts and reports often to monitor for any discrepancies that may affect your credit scores.

Knowing your credit scores can help you avoid unwanted surprises when you’re searching for your first post-graduation job. FreeScore provides consumers with access to credit scores from all three major credit bureaus: TransUnion, Experian and Equifax. Plus, you’ll have the benefit of 27/7 credit monitoring and automatic alerts so that you’ll always know of any changes to your credit reports, giving you peace of mind while you job hunt.

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Home Prices Continue To Slide

March 29, 2012, by FreeScore

home prices dropWith home prices continually dropping, you would think that lenders would be more likely to give you a home mortgage deal, right? Not necessarily.

CNN recently reported that home prices are going down, enticing many mortgage shoppers with the thought of receiving a low interest rate on a home mortgage loan. Home prices have fallen an astonishing 34.4% since the peak set in July 2006. But before you get ahead of yourself with eagerness to apply for a loan, the reality is that lenders are still very selective about who they are offering home mortgages too.

The average rate on a 30-year mortgage loan jumped to 4.08% last week, up from 3.88% two weeks ago, according to mortgage giant Freddie Mac in USA Today. While the home prices may be dropping, the buyer’s market is still limited to the people with incredible credit scores and a lot of money to put down. From 1990 through 2010, mortgage rates averaged 7.1%, according to the same data conveyed by USA Today.

So why are so many lenders still picky when it comes to potential mortgage borrowers? It comes down to personal finances and other economic apprehensions. Unemployment is still high at 8.3%, causing lending standards to stay tight. Even people who want to refinance their mortgage and take advantage of lower interest rates will need excellent credit to do so.

If the thought of snagging your dream home at a more affordable price is making you drool, staying on top of your credit and checking your 3 credit scores regularly through FreeScorecan get you on the right track to making those dreams happen. It’s also important to note that you can check your credit information as often as you like through FreeScore without any risk of lowering your credit scores.

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Posted in Real Estate | No Comments »

Credit Management 101 for College Students

March 26, 2012, by FreeScore

credit managementCollege students have to deal with a lot these days. In addition to worrying about grades, getting to class on time and balancing a social life, more students are finding that they also have to be concerned with paying rent, car payments and other living expenses. This can lead to a lot of outstanding student loan debt, and worse: blemishes on their credit reports.

In fact, a recent MSN Money article stated that a typical college student graduates with about $25,000 in student loan debt which is leading to a considerable increase of consumers looking to bankruptcy attorneys for help.

And, it doesn’t stop with student loan debt. Students are also turning to credit cards to pay necessary expenses, and many college graduates leave school with a few thousand dollars in credit card debt, spread over several accounts.

It is important to manage your money wisely and avoid over spending while attending college. The National Endowment for Financial Education (PDF) offers some tips to help you manage your money, including creating a budget and sticking to it, separating your wants from your needs and monitoring your credit card purchases. And, above all else, remember to check your accounts and credit report often to watch out for any discrepancies.

Knowing your credit scores and reports can help you avoid unwelcome surprises after graduation. FreeScore provides access to all three credit scores and reports from the three major credit bureaus: TransUnion, Experian and Equifax. In addition, you will have the benefit of 24/7 credit monitoring and automatic alerts that notify you of any changes to your credit reports. Don’t neglect what may be one the most important aspects of your education: smart credit management and protection.

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Avoid Exposing Your Credit Scores to a Taxing Situation

March 22, 2012, by FreeScore

tax statementIt’s that time of year again: Tax season. And, the deadline to file your taxes will be here before you know it. Usually, people fall into two categories: those who file early because they expect to get a refund and those who wait until the last possible second because they think they may owe the IRS money. If you fall in the latter category, then you’re probably under a bit of stress. However, you shouldn’t delay the inevitable and risk the possibility that unpaid taxes could drag down your credit scores.

According to the IRS website, if you don’t pay your taxes in full when you file your return, then you will receive a bill that states your balance. This includes the amount that you owe for taxes, as well as any penalties and interest that has accrued. To avoid any fees, the IRS advises that you pay the amount that you owe within 120 days. However, those who can’t pay the full amount within 120 days and owe less than $50,000 should set up an installment agreement. This will allow you to pay off your debt over time.

If you don’t set up an installment agreement, then the federal government may file a Federal Tax Lien which will notify the public that you have unpaid federal tax debts. And, because it is a part of public record, a tax lien will be reported to all three credit agencies, TransUnion, Experian and Equifax. As a result, your credit scores could be negatively affected. What’s worse, unlike other credit and loan accounts, the IRS will not periodically update the balance on your lien, making it harder to rid your credit report of this blemish.

Those getting a tax refund aren’t off the hook either. Although you may want to spend your refund check on a vacation or new gadget, you should use your tax refund to pay off bills that could damage your credit scores if left unpaid or paid late.

Just as it’s important to be punctual with your taxes, you also need to stay on top of your credit with FreeScore. With easy access to your credit scores and reports from all three major credit bureaus, you can check your complete credit profile every month to make sure there are no discrepancies. Plus, you have the benefit of 24/7 credit monitoring and automatic alerts so that you can always stay on top of your credit reports and avoid unwelcome surprises.

 

 

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Posted in Credit Help, Credit Problems, Credit Tips | No Comments »

Say “I Do” to Smart Credit Management

March 20, 2012, by FreeScore

overspending on weddingMaybe you’ve seen the hit TV show “My Fair Wedding with David Tutera,” on WE tv, and dream about a celebrity wedding planner showing up at your door with all the cash and connections to transform your big day from ordinary to extravagant. You’re not alone. Most brides start fantasizing about the wedding of their dreams when they’re just little girls. As they get older, the pressure (and expense) to make that long-awaited day “perfect” keeps increasing.

The reality is that many couples have to pay for their wedding out of their own pockets, with little help from relatives, let alone a wedding planner for the stars. According to the U.S. News & World Report, the average couple spent a staggering $25,631 on their wedding in 2011, with 30 percent of those footing the bill themselves. The major costs that come with wedding planning can undoubtedly overwhelm wallets and loom over a couple’s heads during one of the most exciting times of their lives – and long after the wedding hall has emptied out.

Everything from booking a venue, to hiring a florist, and accommodating guests is expensive. It’s tempting to resort to using credit to finance your wedding day. Of course, you’ll wind up regretting reckless expenditures like that $300 purchase on bridesmaid favors you charged to your credit card when you find out that your credit scores have suffered.

Don’t ruin the blissful memory of your wedding by looking back on it as a day of financial regret. Being stuck in a pile of debt post-honeymoon is a total mood-killer and no one wants to start his or her married life with a burden of bad credit. That’s why it’s important to keep track of you credit scores before your big day. FreeScore offers you complete credit management, including unlimited access to your 3 credit scores, credit monitoring that guards against frauds and errors, and automatic email alerts of changes to your credit.

After all, living “happily ever after” has a lot to do with how wisely you manage and protect your credit.

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Posted in Personal Finances | No Comments »

Does Your State Suffer From Bad Credit Scores?

March 12, 2012, by FreeScore

We all know that millions of Americans suffer from the effects of bad credit scores. But are there parts of the country where credit scores are worse across the board? According to an article on TIME Moneyland, here are five states with the worst credit scores:

  1. Mississippi – 622
  2. Arkansas – 634
  3. Louisiana – 635
  4. West Virginia – 635
  5. South Carolina – 636

 

worst credit scoresA good credit score is usually between 680 and 724. A great score is between 724 and 759. Anything above that is considered “excellent” and can help you secure the best interest rates and benefits when applying for credit. Having a credit score that hovers in the low 600s is usually the result of late or missed payments on credit cards, mortgages or medical bills. It only takes one missed payment to seriously affect your credit. Or there could be discrepancies or unauthorized charges dragging down your credit scores without you even knowing it. Bad credit scores can wreak havoc on your life. People with lower scores may find themselves constantly being rejected for new lines of credit and even jobs. Those who manage to get approved for a credit card or mortgage may find themselves staring at higher-than-average interest rates.

Most people probably couldn’t tell you the average credit score of the state they live in, which isn’t surprising. What is shocking is the number of people who are clueless about their own credit scores. A recent survey by Visa Inc. revealed that 42 percent of Americans fail to regularly check their score. Being clueless about your credit could lead to major consequences down the road. When was the last time you pulled your credit scores and reports?

If you don’t know what lenders see when they look at your credit, it’s time to sign up for FreeScore. You’ll receive access to your three credit scores and reports from Equifax, Experian and TransUnion. When you sign up for the Power of 3, you’ll also receive 24/7 credit monitoring and automatic alerts that notify you of any suspicious activity. Even if your state isn’t known for bad credit scores, monitoring your credit can help you avoid any nasty surprises when applying for a credit card or loan.

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Posted in Credit Problems | No Comments »

Give Your Credit a Spring Cleaning

March 7, 2012, by FreeScore

credit cards and spring cleaningThe flowers are in bloom, egg-shaped chocolates line the aisles of the supermarket and the pile of paperwork sitting on the desk beside your home computer says it’s time to do your taxes. Yes, spring is in the air. And you know what that means: time for a little seasonal cleaning. However, dusting your floorboards and washing your windows aren’t the only kinds of cleaning that should be on your mind.

Recently, CreditCards.com addressed this very issue with six steps to help you clean out the clutter and refresh your finances. Below are some of the suggestions from the article.

  • Rid Your Files of Clutter: Go through your filing cabinets and remove all of the unnecessary documentation. If your statements are for nondeductible expenses, then go ahead and shred them. You can also prevent yourself from accumulating unnecessary clutter by going paperless. Try signing up for online statements and pay your bills online to see if it helps reduce your clutter.
  • Organize Your Payments: A lot of people have their debt spread across multiple credit cards. This can make it hard to figure out how much debt you actually have, and how much you’re paying out each month. By compiling all of this information into one document, you can manage your debt more effectively, paying off high-rate cards first and then moving on to debt with lower interest rates. Knowing how much debt you have each month makes it easier to prioritize and can keep you from missing a credit card or mortgage payment.
  • Go Shopping: No, this doesn’t mean you get to go shopping for a new big screen TV or boat to take out on the lake this summer. However, you should shop around for better interest rates. By doing a little bit of research, you may be able to find lower rates for everything from your mortgage to your car loan, giving you more money to save for those fun expenditures. If you have good credit scores, lenders may be more willing to lower your interest rates.

You also want to make sure you don’t have any old blots, discrepancies or unauthorized charges looming on your credit report that could damage your credit scores. Millions of Americans have their credit scores negatively affected by errors. Knowing your credit scores and reports can minimize financial clutter by helping you avoid unwelcome surprises. FreeScore provides easy access to all three credit scores and reports from the three major credit bureaus: TransUnion, Experian, and Equifax. You’ll be able to see what’s affecting your credit and if there are any errors or signs of fraud. With the Power of 3, you’ll also have the benefit of 24/7 credit monitoring and automatic alerts that notify you of changes to any of your credit reports.

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Posted in Personal Finances | No Comments »

Rising Health Care Costs May Lower Your Credit Scores

March 1, 2012, by FreeScore

Rising Health Care Costs May Affect Your CreditHealth care continues to be in the news for a variety of reasons, none of which are particularly reassuring. One of the major issues that continues to affect millions of people is rising insurance costs. Not only can these extra expenses dissuade you from visiting a doctor, but it can also have a negative effect on your credit scores.

According to a recent article on HealthLeaders Media, the average per capita cost of health care services covered by Medicare programs and commercial insurance rose by 5.28 percent in 2011. Standard & Poor’s Healthcare Economic Indices show costs covered by commercial insurance plans grew by 7.11 percent, while Medicare claim costs rose by 2.51 percent.

These expenses can quickly lead to bad credit if you miss any payments. Unpaid bills are often reported to collection agencies, leaving a mark on your credit reports. In fact, a Commonwealth Fund Biennial Health Insurance Survey revealed an estimated 53 million people had trouble paying or were unable to pay their medical bills.  Of those unable to pay, 30 million were reported to a collection agency.

Even if you have the money to pay off your medical bills, you still may find your credit scores dropping due to billing errors. People who never check their credit reports could be on the hook for medical expenses they assumed were already taken care of. A study by the Commonwealth Fund reported that medical billing errors  negatively affected an estimated 14 million Americans.

With all of the risks associated with unpaid medical bills, knowing your credit scores and reports can help you avoid unwelcome surprises. FreeScore provides access to all three credit scores and reports from the three major credit bureaus. You’ll be able to see what’s affecting your credit and if there are any errors or signs of fraud. With the Power of 3, you will also have the benefit of 24/7 credit monitoring and automatic alerts that notify you of changes to any of your credit reports.

Posted in Credit Help, Credit Problems, Credit Tips, Personal Finances | No Comments »

Don’t Let Divorce Ruin Your Credit Scores

February 9, 2012, by FreeScore

Credit Scores and Divorce

Couples getting divorced have to account for many lifestyle changes. From splitting up assets to seeking new places to live, a break up can feel overwhelming. One way to give yourself an advantage when starting over is to protect your credit scores.

A recent article on MSN Money explains the importance of managing credit, especially during a divorce. Here are some ways to ensure your financial future is bright.

  • Create a post-divorce budget – Even though you may want to keep things as stable as possible, it’s important to remember that you’re now living with a single-income budget. Housing costs should take top consideration when planning a new budget, but there are also several other factors to consider like credit cards, auto payments and cell phone bills. Don’t get stuck trying to pay beyond your means.
  • Take stock of your debts and credit lines – The longer the relationship, the more accounts you probably share with your spouse. Credit cards, home equity lines and other accounts need to be accounted for. To make sure you’re not forgetting about a credit source, pull your credit report.
  • Remove each other as authorized users – People often list spouses as authorized users on credit card accounts. However, some forget to remove them during a divorce. Allowing your ex to have access to your credit cards could have a serious impact on your credit scores. Remember to call your credit card company to revoke access, and make sure your name is removed from your ex’s accounts as well.

If you need access to your credit scores and reports, consider signing up for FreeScore. You’ll be able to see your three credit scores and reports anytime at the top 3 credit bureaus: TransUnion, Experian, and Equifax. And with the Power of 3, you’ll also receive 24/7 credit monitoring and automatic alerts that allow you to stay up-to-date if a change occurs on any of your accounts.

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The Unemployment Rate is Dropping; How About Your Credit Scores?

February 8, 2012, by FreeScore

credit scores and employmentAre you searching for a new job? If so, you may be pleased to hear that the U.S. unemployment rate has fallen to a near three-year low. According to an article on MSNBC.com, the nation’s unemployment rate fell from 8.5 to 8.3 percent in January.

While the unemployment rate has improved, making it more likely for you to get an interview, a credit check could still make or break your job application. Many employers perform credit checks on potential employees to measure financial responsibility. Having bad credit scores could be interpreted as a sign of recklessness and poor judgment, keeping you from getting the job you’ve always wanted. Of course, good credit scores may help you stand out from other qualified applicants. So what will a company see on your credit report?

If you’ve ever been curious about what your credit history looks like, consider signing up for The Power of 3 from FreeScore. You’ll receive access to your three credit scores and reports from Equifax, Experian and TransUnion. Be sure and check these reports for accuracy throughout your job hunt, bearing in mind that your credit profile could change at any time. After all, it would be a shame for you to miss out on a great job opportunity just because of an error on your report. You’ll also receive 24/7 credit monitoring and automatic alerts that notify you of any suspicious activity on your accounts. Even if you think you have excellent credit, an identity thief could quickly ruin everything. In the event that your identity is stolen, FreeScore will put you in touch with licensed investigators who can help restore your good name.

Don’t let one bad score keep you from getting the job you’ve always wanted. FreeScore can provide the information you need to understand your credit scores and reports. With this knowledge in hand, you’ll be able to make better credit decisions and be confident when a potential employer says, “We need to check your credit scores before we can hire you.”

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Posted in Economy | No Comments »

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