Scores Are Stressing Everybody Out!

Is the credit crunch stressing you out about your credit score? Looks like you’re not the only one!

The same banks that have been under scrutiny for increasing credit card rates and fees after receiving bailout money are starting to receive some pressure about their performance under recent stress tests. These banks do not seem to be too happy about how their scores came in either! So much that they’ve disputed the scores they received; much like how you would dispute what you believe to be inaccurate items on your credit report, therefore, causing a lowered score.

A LITTLE TASTE OF THEIR OWN MEDICINE:

Imagine a $700 billion dollar tax lien looming  on your credit report. Why a tax lien? Well, first of all, a tax lien (which seems appropriate seeing that it is a debt to the government) will never be removed from your credit report until it is paid. Secondly, a tax lien can be attached to assets to insure it is not left by the wayside. There is a strong possibility that the government could convert its stake in the banks to common shares (which would mean they either raise money from investors or have to receive MORE funds from the Treasury Department).

A GOOD INVESTMENT?

As a Lender, there are guidelines we have to go by to assure we are not making any poor financial decisions. Once a loan is funded it is then sold to investors on the secondary market. These investors will not purchase any loans that have liens on them already. By the Law of Common Sense, who in their right mind would invest (or lend) to someone that has a huge debt owed to someone else?

LOW SCORES MEAN HIGHER RATES

Leverage what you know. Go to your bank (more than likely it is one of the 19 that are referenced above) and tell them that you are increasing the interest rates on your savings and investment accounts with them due to their increased risk of default. Put them under just as much pressure as they have been putting on the millions of Americans out there.

INTEGRITY IN EVERYTHING WE DO

We are seeing a failing economy that resulted from being more about blame and not about owning up to lack of financial responsibility. The change is not about trying to get others from bailing us out, but by assessing how and why we got in the position that we are in and learning from our mistakes. Let’s recreate an economy that has standards, ethics and responsibility so that the following generations have a path already paved.

No One Is Immune…..

First of all, I want to thank the multitudes of you that have shared your stories about the credit card companies’ raising your interest rates. This week you are going to see titles like “No One Is Immune…”, which will cover the unexpected volatility of our current market. I am going to keep you informed as to how powerful people and companies are at the mercy of the credit crunch and the reactions of each.

Recent news has shed light on the credit card industry as many consumers are being targeted for interest rate hikes, often times without doing anything wrong. The House Financial Services Committee has passed a bill regulating credit card interest rates and fees this week. If everything stays set in motion, the full House will vote on this bill as soon as this upcoming week. In a time where cash is king, so is credit; which is why legislation is aimed towards consumers having more control over their credit.

Please continue to share your comments about how this is affecting your lives and possible solutions.

Fox News with Shepard Smith - April 21

Help Wanted

Need a Job? Look no further…

The top ten best cities for employment:

1. Austin-Round Rock
2. Houston-Sugar Land-Baytown
3. San Antonio
4. Fort Worth-Arlington
5. Dallas-Plano-Irving
6. Seattle-Bellevue-Everett,Wash.
7. Salt Lake City
8. Raleigh-Cary, N.C.
9. Oklahoma City
10. Portland-Vancouver-Beaverton, Ore.-Wash.

Government, education and health services are among the top jobs available currently.

On The Money - April 17th