Tag: Credit Score

Credit, Foreclosures, Timothy Kingcade Posts

Rebuilding Your Life After Foreclosure

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Record-breaking foreclosure rates have been a popular topic in the media since the housing market crashed. Unfortunately, we do not hear much about what happens to these families after they have lost their homes. Homeowners who have been foreclosed on by their lenders face many hardships, even after the dust has settled from their case. Below are some of the issues that foreclosure victims face and some smart solutions to their problems.

Finding a New Place to Live
Finding a new place to live is the most dire and immediate challenge foreclosure victims face. Many who have recently been foreclosed on do not have the cash for a deposit for rental property. Also, many landlords will not accept a renter with lower credit scores, which many foreclosure victims have. The best thing to do is to make plans as soon as you think you might be foreclosed on. This will allow you time to save up some cash to rent, if need be.

Suffering Through the Credit Fallout
Once other creditors find out that you have been foreclosed on, they tend to think it is likely that you will default on your debt with them, as well. As a result, you are likely to be forced to pay an inflated interest rate. Some foreclosure victims see interest rates rise as much as 30 percent. The best thing you can do is work toward rehabilitating your credit score as fast as you can, to be eligible for lower interest rates.

Purchasing a New Home
If you were foreclosed on due to circumstances that were beyond your control, such as unemployment, you are more likely to be eligible for a mortgage in the near future. Many foreclosure victims are able to obtain a mortgage again within three years of a foreclosure. Federally insured mortgages are the best option for foreclosure victims, i.e. FHA loans. However, you must understand that in order to obtain a mortgage in three years, you will need to prove that you have been practicing good bill-paying habits since the foreclosure.

Explaining Your Foreclosure to a Potential Employer
In financial-related fields, it is not uncommon for employers to run credit checks on potential employees to see how financially responsible the person is. If you have recently been foreclosed on and are applying for a position where you will be handling money, you should have an explanation ready for your potential employer.

Post-Foreclosure Tax Bill
If you have been foreclosed on and your home has been sold in an auction, you may be billed for taxes your lender was not able to recover from the sale of the property. However, there are some reasons you may not be obligated to pay the tax bill. If you are financially insolvent, the IRS may allow the debt to be forgiven.

Click here to read more on ways to rebuild after a foreclosure.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the website, Kingcade & Garcia, P.A.

Bankruptcy Law, Credit, Timothy Kingcade Posts

5 Steps to Rebuilding your Life after Bankruptcy

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It can be overwhelming trying to re-build your credit score, finances and emotional well being after filing for bankruptcy. However, it is important to realize that there is life after bankruptcy. In fact, if you strategize and take the necessary steps, bankruptcy protection can be extremely rewarding. Your life after bankruptcy depends on your recovery process. See below the five steps you can take to recover quickly from bankruptcy.

1. Let go of the guilt and shame. In 2010, there were 1.53 million personal bankruptcy filings; therefore, you must realize that you are not alone. Millions of Americans are battling the after effects of the Great Recession, just as you are. Rather than beating yourself up with shame and guilt, make peace with yourself, knowing that you made the best decision for your family and your finances.

2. Reflect and Regroup. One of the best things you can do to recover from bankruptcy is to reflect on where your financial situation went wrong. Whether it was something you did or something beyond your control, such as losing your job, finding the cause of your bankruptcy can help you move forward and prevent financial problems in the future.

3. Create a Budget and Pay Your Existing Bills on Time. After you have filed for bankruptcy protection, you must create and stick to a budget. Your budget will help you manage your money and help you avoid racking up more debt. Within your budget, you should create an emergency fund. This fund will help you if something comes up in the future. You should also set up automatic payment for your current bills, so that you can build your credit score and avoid delinquent bills.

4. Pick a Credit Card that will help you Rebuild your Credit Score. You may be wary of any kind of debt such as credit card debt; however, applying for a credit card can be the key strategy to rebuilding your credit score after bankruptcy. The best cards for bankruptcy filers to apply for are secured credit cards. These credit cards allow you to deposit money into a bank account, which becomes the amount you can spend on your credit card.
5. Educate Yourself on Bankruptcy. There are many myths and misconceptions about bankruptcy. For example, it is widely believed that bankruptcy will keep you from getting a mortgage for ten years. In reality, many bankruptcy filers are able to get a mortgage just two years after filing for bankruptcy. Myths such as these can deter those who really need it from filing for bankruptcy.

Click here to read more about the steps you can take to rebuild your life after bankruptcy.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of 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.

Bankruptcy Law, Credit, Timothy Kingcade Posts

The Devastating Effect Medical Bills can have on your Credit Score And what you can do about it

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One thing that can be the most devastating to your credit score is an unpaid medical bill. Many Americans find themselves with a low credit score due to unpaid medical debt. Commonwealth fund estimated that nearly 30 million Americans were contacted by collection agencies for unpaid medical bills during 2010. In many cases, they did not know about the debt until it already damaged their credit score. A combination of sky-high bills, insurance processing delays and billing mistakes are often to blame for credit-harming medical bills. Unfortunately, many patients believe that medical bills cannot harm their credit score, when in reality even unpaid $15 co-pays can cause your credit score to plummet.

See below four medical bill myths that can wind up hurting your finances and your credit score:

1. As long as I am making payments on a medical bill, it cannot be sent to collections.

2. I have to be notified before a medical bill is turned over to a collection agency.

3. Medical collection accounts are treated differently than other types of collection accounts when credit scores are calculated.

Another unfortunate fact about medical debt is that most of those who are contacted by collection agencies do not fully understand their rights regarding the debt. If you are contacted by a collection agency you have (1) the right to receive written confirmation of the debt and (2) the right to dispute the debt. Under the Fair Credit Reporting Act, you also have the right to dispute inaccurate information on your credit report. Congress is currently considering the Medical Debt Responsibility Act, which will help out those who are struggling with medical debt. The proposed legislation would require medical bills to be removed from credit reports 45 days after they are paid as long as the original amount does not exceed $2,500.

Click here to read more on the negative effects medical bills can have on your credit score.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of 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, P.A. website.

Bankruptcy Law, Credit, Timothy Kingcade Posts

Best Credit Cards to use after Bankruptcy

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Believe it or not, getting a new credit card after filing for bankruptcy is one of the best ways to begin rebuilding your credit score. But how do you know which one is right for you? A secured credit card is a great way to start over. These are one of the few types of credit cards that tend to be easy to get if you’ve been through bankruptcy or other credit problems. In most cases, they are available as soon as your bankruptcy is discharged. You’ll place a security deposit with the issuer and get a major credit card you will use just like any other credit card.

To ensure you get the maximum benefit from your secured card, it is important you do three important things:

1.) Choose a card that reports your payment history each month to all three credit-reporting agencies.

2.) Make your payments on time, all of the time, NO EXCEPTIONS. A single late payment can cause your credit score to drop significantly.

3.) Keep your balance low. Only use 10%-15% of your available credit line.

If you are trying to rebuild credit after bankruptcy, you need to review your credit reports and scores frequently. Get your credit reports from AnnualCreditReport.com about three months after your case is discharged. Dispute any mistakes you find. Then use Credit.com’s Free Credit Report Card to check your credit score each month. If you have positive credit references reporting to the credit bureaus, you should see steady progress over time. One more tip, do not apply for additional credit until your bankruptcy is discharged. Taking on additional credit while you are still completing a bankruptcy can jeopardize your case.

To read more on this story, visit: http://money.msn.com/saving-money-tips/post.aspx?post=967a4dd7-f42b-4855-9d25-9126b2e51899

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of 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, P.A. at www.miamibankruptcy.com.

Credit, Timothy Kingcade Posts

One in Ten People Denied Jobs Due to Employer Credit Checks

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A recent survey from Demos found that one in four unemployed people were required to go through a credit check when applying for a job. The survey also found that one in ten people were denied employment due to information on their credit report. The survey was conducted on 1,000 low and middle-income households. Most people believe credit checks are only required when applying for senior level positions; however, the study found that credit checks are commonly used for entry-level or low-paying positions as well. It is likely that some workers denied a position due to their credit score have errors on their report. According to the Federal Trade Commission, one in five consumers has an error on their credit report.

Demos also surveyed the reason for bad credit and found that two common factors for bad credit scores are unemployment and the loss of health insurance. The report attributes many of those with bad credit to poor misfortune and a suffering economy and says little of how these people would perform at work. The survey also found that minorities are affected more by these credit checks than white households. African-American households had an average unemployment rate of 14% at the end of 2012 and Hispanic households had an average of 10%. These are much higher than white households, which were at 6% at the end of 2012, according to the Economic Policy Institute.

To read more on this story visit: http://money.cnn.com/2013/03/04/pf/employer-credit-checks/index.html

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of 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, P.A. at www.miamibankruptcy.com.

Credit, Foreclosures, Timothy Kingcade Posts

10 Reasons You Are Not Refinancing

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Interest rates have lingered at 60-year record lows for some time now, allowing millions of homeowners to refinance their mortgage loans. Interest rates have declined with such consistency that thousands of homeowners have refinanced more than once. However, many homeowners are still hesitant to do so, below are ten possible reasons why:

1. Credit Score: Whether you are refinancing your home or buying a home, mortgage lenders focus on your credit score. You will need a score of at least 740 to get the best interest rate possible. If your current credit score is low, you can try to refinance with the Federal Housing Administration (FHA). The FHA has a minimum credit score requirement of 580.

2. Equity: Many homeowners have not recovered equity lost when home prices tanked six years ago during the housing market crash. In the past, homeowners with little equity did not possess much bargaining power; however, those with little or no equity may now have the advantage. The government’s Home Affordable Refinance Program (HARP) was designed to help underwater homeowners refinance their mortgages. The expansion of HARP 2.0 means that there are no underwater restrictions to qualify.

3. Mortgage Insurance: Homeowners who put less than 20% down when they bought their homes are required to pay lender’s mortgage insurance. If you have been told that you cannot refinance because of mortgage insurance, this is not true. It may be more difficult, but not impossible. You can qualify for HARP whether you pay mortgage insurance or not.

4. Debt-to-Income Ratio: Many homeowners have been forced to rely on credit cards over the past few years, as a result of the recession. Your debt may have piled up to the point that your debt-to-income ratio is too high to refinance. Your best bet is to focus on paying down your debt before trying to refinance.

5. A Low Appraisal: If your appraisal was lower than you anticipated, it is possible you will be rejected for a refinance. However, a low appraisal does not mean that your property is not valuable. You may need to challenge the low appraisal or renegotiate the deal with your lender.

6. You Think You Are Too Old: If you are retired or close to retirement, you may think refinancing is not worth the trouble. Before ruling out refinancing your mortgage, look into shorter-term loans that might be better for you.

7. Low Income: Even if you are making less money than you were at the time you bought your home; your lender will take into consideration that you have managed to keep current on your home loan. You may also want to look into HARP 2.0, which requires proof of employment and proof that you are making your mortgage payments.

8. Cannot Afford It: Refinancing fees cost approximately 2% of your loan amount. The closing costs, appraisal fees and credit checks will likely cost you a few thousand dollars. Also, beware of “no-cost” refinancing. Lenders that offer these deals will charge you a higher interest rate.

9. Unable to Document Income and Assets: You may think as long as both, your credit score and home value are in check, you can get approved for a refinance. However, you will need proper documentation of your income, assets, deposits and tax forms. If you cannot provide this paperwork, your refinance will likely be rejected.

10. Not Worth the Trouble: Refinancing your home is not a fun or easy experience. Many homeowners today avoid refinancing simply because it is not worth the trouble. Rather than ruling out refinancing altogether, look into streamlined programs that provide a simple and quick refinancing option.

To read more on this story visit: http://realestate.msn.com/10-reasons-youre-not-refinancing#1

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of 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, P.A. at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

One in Four Consumers Have Errors on Their Credit Reports

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A study conducted by the Federal Trade Commission (FTC) showed that approximately 26 percent of consumers found errors on their credit reports. However, only about five percent of these study participants had errors on their credit report that was damaging to their credit score. The five percent with damaging errors on their credit score are more likely to be denied for loans or have higher interest rates, as a result of the errors. There has been controversy for many years regarding the accuracy of credit reports and the recent study by the FTC made valid points for both sides of the argument. The study followed 1,001 consumers as they checked their credit reports for errors. Those who did find errors were also followed as they disputed the errors. Once the errors were fixed, it tracked how the consumer’s credit score improved.

The best way to avoid damaging errors on your credit report is to keep a close eye on it. You can request a free report once a year from three major agencies: Experian, Equifax and TransUnion. If you find a mistake, you should dispute the error. Unfortunately only 19 percent of credit reports errors are disputed. However, disputing an error is relatively easy, if you use the online features that are available.

To read more on this story visit: http://www.mcall.com/news/local/watchdog/mc-credit-report-errors-watchdog-20130216,0,2700796.column?page=1

If you have any questions on this topic or are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of 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, P.A. at www.miamibankruptcy.com.

Credit, Timothy Kingcade Posts

5 Quick Fixes for Your Credit Score

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Mortgage borrowers are struggling to obtain the best rates when purchasing a new home. If your credit score is less than 740, these quick fixes are for you:

1. Pay down credit card balances. FICO scores are the highest for those who carry less than a 20% balance on their credit cards. Most analysts believe paying down credit card balances is the best way to improve your credit score.

2. Fix credit report errors. Many individuals have credit report errors weighing down their scores and have no idea. A common credit report error is a medical collection. You may think your insurance company has taken care of a bill and vise versa. It is vital that you make sure your credit report has no errors.

3. Eliminate disputed accounts. Removing disputed accounts from your credit report is essential to improving your credit score. Disputed accounts appear as a negative item. If you are applying for a conventional loan guaranteed by Fannie Mae or Freddie Mac, these items must be removed.

4. Use an old credit card or apply for a new one. Unused credit cards will not have a positive impact on your score unless you begin using them. It may seem as though it will help your score if you do not use your credit cards, but using them responsibly will improve your score at a much faster pace.

5. Do not close any accounts. Opening new credit cards that are unnecessary and closing unused credit card accounts are equally negative for your credit score.

To read more on this story visit: http://money.msn.com/credit-rating/5-fast-fixes-for-your-credit-score

If you have any questions on this topic or are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of 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, P.A. at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

6 Great Credit Cards to Rebuild after Bankruptcy

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Many Americans are struggling to redeem their pre-recession credit scores. Whether you have recently filed for bankruptcy, been foreclosed on by your bank or simply struggled to pay your bills, rebuilding your credit score can be a long process. Below are six great credit cards to help you rebuild your credit score:

1. Navy Federal Credit Union nRewards Card: According to credit card expert Beverly Harzog, this is one of the best credit cards for rebuilding a credit score. You must be in the military or related to someone who is in the military to be eligible for this card. This card has no annual fee and the percentage rate is a variable 8.9%. It has a 25 day purchase grace period and it reports to the three major credit bureaus: Equifax, Experian and TransUnion.

2. Citi Secured MasterCard: With this card, you will earn a 1.01% annual yield because Citi invests your money in an 18-month certificate deposit of savings account. The annual fee is $29 per year, which is very low. This card is best for those who do not typically carry a balance because the variable APR is very high.

3. Capital One Secured MasterCard: This card also has a very high variable APR at 22.9%, but a low annual fee. A positive feature of this card is that the bank supplies cardholders with a credit-monitoring tool so that if you are struggling with your score, you can monitor it closely with this card.

4. Wells Fargo Secured Card: This card has a very low annual fee of $25, but it has a high APR of 18.99%. If you use this card responsibly, Wells Fargo will consider you for an unsecured credit card.

5. US Bank Secured Visa Card: Similar to Wells Fargo, this secured card can put you on the track to an unsecured credit card. Responsible card users can qualify for an unsecured card from US Bank in as little as 12 months.

6. Platinum Zero Visa Card from Applied Bank: Cardholders should be aware of the $9.95 monthly maintenance fee on this card. However, if you typically carry a balance on your card, this one is ideal for you. This card charges 0% interest on purchases and there is no credit check required.

To read more on this story visit: http://money.msn.com/credit-cards/6-great-cards-for-rebuilding-credit

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of 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, P.A. at www.miamibankruptcy.com.

Credit, Foreclosures, Timothy Kingcade Posts

Mortgage Interest Rates Frozen – Money Tips for 2013

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It’s been reported that the Federal Reserve will likely keep interest rates regulated throughout 2013. In order to spark housing market growth, the Federal Reserve will keep the lending rate between banks in the 0% – 0.25% range until mid-2015.

Below are some savings and credit tips for the 2013 economic climate:

• Freeze your mortgage rate. Mortgage interest rates are at a 40-year low; therefore, you can lock in your mortgage with a fixed-rate. The interest on a 30-year fixed mortgage has been 3.57% throughout January.

• Lower your mortgage term. If you are planning on refinancing your home and might be moving within a few years, you should consider an adjustable-rate mortgage. During January, initial rates on five-year ARMs were 2.68%.

• Open long-term CDs. Place your cash in a long-term CD with low withdrawal penalties. This will give you the opportunity to make thousands of dollars in just a few years time.

• Avoid rising-rate CD lures. If a bank offers you an option for a higher yield on a CD if rates rise, you typically get a low initial rate. It is better to shop around and compare other rates with the fixed equivalent.

• Use local banks. Online banks sometimes have the best rates. However, if you prefer a bank you can physically go to, community banks are a great choice. Most local banks are less affected by the Federal Reserve and offer great rates. Visit www.findbankrates.com for the best rates in your area.

• Transfer a balance. Average interest rates on credit cards are extremely high right now. You can transfer a balance from a card with a higher rate to a card with a lower rate and save money.

• Carry rewards cards. If you are usually able to pay off your credit card balance, you are best suited for a rewards card, rather than an extremely low interest rate card.

To read more on this story visit: http://money.cnn.com/2013/01/01/news/economy/interest-rates.moneymag/index.html

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Foreclosure defense attorney, Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.