Credit Card Now

Dear Creditnet: I’m currently in the market for a new TV and Best Buy is offering 0% financing for three years.

My question is when you open an account like this, how big of a hit does your FICO score usually take and how long will it take to rebound?

I could easily pay cash for the TV up front, but the “finance” person in me says it’s free money—why not take the terms?

Answer: Hard inquiries for a new credit card will generally drop your FICO score about five points, but it should bounce back within a few months. In some c

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A loan that is backed up by collateral to reduce the risk assumed by the creditor is referred to as secured loan. This loan may be secured by assets like houses, cars, stocks, bonds or other properties registered in the name of the loan borrower. For obvious reason, the valuation of the collateral must be relatively greater than the amount of loan taken out.

Before the loans are approved, the titles shall be delivered to and kept by the lender until full payment thereof. While the lender is in possession of the titles, the properties entail restrictions as to its use and disposal.

The common types of secured loan are nonrecourse and mortgage. Read more…

Tags: Secured Loans

Oh my gosh, I’m so excited I could just go and flip a table.

My blog titled “‘Real Housewives of New Jersey’ credit card tales of trouble” about the broke but fabulous RHNJ co-star Teresa Giudice was included in the Carnival of Personal Finance hosted by Beating Broke.

Teresa and her husband are dealing with some nasty credit card debt right now. They’ve filed for bankruptcy but potentially face more legal troubles for allegedly concealing assets and lying under oath. Check out the carnival to get more information on this and a plethora of other finance-related topics.

President Obama recently signed the Dodd-Frank Wall Street Reform and Consumer Protection Act.  It is commonly known as the Financial Reform Legislation and is designed to help prevent economic failure.  To accomplish this it has many new regulations and restrictions on lending and credit.  Its far reaching effects go all the way down to your individual credit score.

This legislation means your credit score is now more important than ever to get a loan or financing for both you personally and for small business owners whose personal credit is used.

Among other things, lenders will be required to certify that consumers have a reasonable ability to repay a loan.  Lenders will look at your income closely, but this will also force more scrutiny on your credit score and credit report showing your prior ability to pay your obligations.

This means your credit score is now more important than ever to get a loan and especially a mortgage.  It is interesting to note that Auto lending is exempt from this legislation, but your credit score plays a big role here too.

Make sure your credit score is the best it can be, before you apply for any loan.  Also, make sure you have credit monitoring and identity theft protection.

How to get the best credit score possible.

No credit score will last forever.  It w

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I just read something on CNN that shocked me. When Facebook CEO Mark Zuckerberg was a mere 18-year-old college student at Harvard, he allegedly granted a businessman an ownership stake in what was then a small online side-project. Now it’s a billion-dollar Internet company, and New Yorker Paul Ceglia is trying to claim what he says is rightfully his.

Ceglia claims that he hired Zuckerberg in 2003 to work on two business ventures, one of which was “designed to offer the students of Harvard university access to a wesite [sic] similar to a live functioning yearbook with the working title of ‘The Face Book.’” Sound familiar?

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