Posts Tagged: ‘TransUnion’

Consumer Credit Scores to Exclude Some Debt and Liens Starting July 1st

March 17, 2017 Posted by kingcade

The nation’s three largest credit-reporting agencies will soon exclude tax liens and some civil debts from their reports. The change by Equifax, Experian and TransUnion will take effect July 1st. According to the Consumer Data Industry Association, it is part of a plan to ensure that consumer identifications in the data are accurate and current.

The provision is likely to improve millions of American’s credit scores. If reports on those tax liens and civil debts do not include the consumers’ names, addresses and Social Security number, they will not be reported.  Additionally, the records will not be included without courthouse visits to obtain newly filed and updated public records at least every 90 days.

However, there are some controversies surrounding the changes. Although they are likely to help consumers appear more credit-worthy, the updated policies could potentially make loan-screening more difficult for lenders.

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

 

Goldman Sachs Extends Consumer Lending Arm

March 2, 2017 Posted by kingcade

More than a third of borrowers with FICO scores above 660 have high interest credit card debt, making them an ideal customer for “Goldman’s Marcus,” which offers personal loans of as much as $30,000 for up to six years. Personal, or unsecured loans, are well suited for debt consolidation. They do not require borrowing against something of value, like a house or car, which makes them particularly attractive for those without that kind of equity.

Online lenders have joined in as well.  SoFi, Lending Club and Prosper, have emerged in recent years to offer these types of loans as the alternative, particularly for the millennial generation who may want to consolidate their debt but do not have the home equity for a secured loan to do it.

The number of people taking out unsecured loans increased more than 15 percent to 15.82 million in 2016 from 13.72 million the year earlier and is now at the highest level since 2009, according to TransUnion.

Proceed with caution if taking out these loans, as it will increase your overall debt level.  They also cannot match the zero percent balance transfer offers when it comes to consolidation.

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Qualifying for a loan is getting harder for some consumers

February 15, 2017 Posted by kingcade

Banks are becoming more selective when it comes to approving loans for those with less than perfect credit.  The data is surprising as many consumers seem to be benefiting from job growth and lower debt levels.  However, 11.7% of banks have tightened their standards for auto loans in the first quarter, from 3.3% last year, according to the Federal Reserve and Deutsche Bank.

Credit card standards were strengthened by 8.3% of banks, compared to none in the fourth quarter.  With the economy in its eighth year of recovery, lenders are extending their reach to those with cash flow pressures, borrowers at low – and middle class income levels to increase revenue.

The share of delinquent personal loans and credit card debt increased in the third quarter to 3.53% and 1.33% respectively, according to TransUnion and UBS.  Out of those consumers surveyed, 18% said they expected to default on a loan payment in the next 12 months, up from 12% in December.

The number of subprime auto loans (those requiring a FICO score of 600 or lower) that were at least 90 days delinquent reached the highest level since 2010 in the third quarter at 6 million.  The number of bad loans were by auto finance companies, not banks.

Two-thirds of the households who earn less than $40,000 say financial concerns have increased over the past six months for them.  The latest numbers reflect the incomes of many low- to moderate-income working families are not keeping up with the costs of rising health insurance deductibles and monthly expenses.

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If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Tips to Improve your Credit Score

February 8, 2017 Posted by kingcade

Having a low credit score can cost you.  If you have a credit score of 620 or below, this is considered to be “bad credit.”  Lenders or credit card issuers, if they are willing to extend you credit at all, are likely to charge you a higher interest rate.  You may also have to pay a utility deposit when starting or renewing service, something people with good credit do not have to pay.  Having a bad credit score can even effect how much you pay for car insurance.

Now onto the good news- there are things you can do to improve your credit score.  Following these easy steps will help push your score in the right direction.

  • Watch your credit card balances.  A major factor in your credit score is how much revolving credit you have versus how much you are using.  The smaller the percentage, the better your credit rating.  The ideal amount is 30 percent or lower.
  • Eliminate small credit card balances.  When you have small balances on credit cards, pay them off.  Charging $50 on one card and $100 on another instead of using the same card (preferably one with a good interest rate) can hurt your credit score.
  • Leave “old debt” on your report. Some people believe that old debt on their credit report is a bad thing.  Good debt- such as a home or car you recently paid off – is actually good for your credit.  Do not close out old accounts where you have had a solid repayment history.
  • Use your calendar.  If you are shopping for a home, car or student loan, it pays to do your rate shopping within a short period of time. Every time you apply for new credit, it can cause a small dip in your credit score, which can last up to a year.
  • Pay your bills on time. If you are planning a major purchase (like a home or car), one of the biggest factors in having a good credit score is simply making on-time payments month after month. Saving up money for a major purchase is smart; just don’t neglect your bills.  This can even extend to outstanding library books.  If the original creditor, such as the library, does not report it to the bureaus, they may eventually call in a collections agency to recoup the unpaid bill.
  • Avoid risk. One of the best ways to improve your credit score it to avoid purchases that might lower it.  This could include taking out cash advances, using cards at businesses that could cause future money stress, etc.
  • Do not obsess. If you are getting ready to make a big purchase, pull a copy of your credit report. You are entitled to one of each of your three credit bureau reports (Equifax, Experian and TransUnion) for FREE every year through AnnualCreditReport.com. While the score you receive may not be the exact one the lender uses, it will grade you on many of the same criteria. If you are denied credit, the lender has to show you the credit score used in their decision making, thanks to the Dodd-Frank Wall Street Reform and Consumer Protection Act.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources: http://www.bankrate.com/finance/debt/7-simple-ways-improve-credit-score-1.aspx

 

Auto and Credit Card Delinquencies on the Rise in the First Quarter

May 17, 2016 Posted by kingcade

Delinquency rates for auto loans and credit cards increased drastically in the first quarter of this year, according to TransUnion.  The serious delinquency rates for auto loans (60 days or more past due) reached 1.12 percent in the first quarter, marking the first time the figure exceeded 1 percent in the first quarter since 2011.

Serious delinquency rates for credit cards (accounts that are 90 or more days past due) increased to 1.47 percent in the first quarter. This is highest first-quarter amount since the first quarter of 2013, when serious credit card delinquencies were 1.51 percent. First quarter 2014 and 2015 delinquencies remained stable at 1.37 percent. Serious credit card delinquency rates, however, continue to remain below the average first quarter rate of 1.52 percent since the beginning of 2011, according to TransUnion.

The year-over-year growth in credit card balances is at a record high. The total balance for credit cards increased 6.4 percent to reach nearly $644 billion in the first quarter, also marking the highest year-over-year growth observed in more than six years.

The total balance for credit cards was $605 billion in the first quarter last year, according to TransUnion. Credit card debt accumulation increased 146 percent from the third quarter to fourth quarter 2015, or $21.3 billion to $52.4 billion, respectively, according to CardHub. The delinquency rate from the third to fourth quarter increased from 2.18 percent to 2.23 percent, respectively.

Click here to read more on this story.

If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.