Use The Digit App To Pay Down Credit Card Debt

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Are you having trouble saving money while simultaneously dealing with excessive credit card debt? Mobile savings apps such as Digit and Qapital can help you establish an automatic saving routine – but Digit has introduced a new Digit Pay feature to assist with paying down credit card debt while you save.

According to the company, approximately 75% of Digit’s customer base carries credit card debt. It’s likely that a significant number of those customers only make minimum payments on their cards each month. Repayment times and interest charges grow quickly when you are only making minimum payments – and it only gets worse if you continue to rack up new charges each month.

Digit Pay assists by allowing you to set a credit card debt goal to chip away at your debt. The Digit app analyzes your spending and income patterns, determines how much you can affo…

Car Leasing 101

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So, you are in the market for a new vehicle, huh? You’ve got some important decisions to make. New or used? Coupe or sedan? Import or domestic? Fire engine red or metallic silver?

But perhaps your most important decision, at least from a financial standpoint, is how you will pay for the vehicle. You have three main options: pay the full vehicle price in cash, borrow money to pay for the vehicle, or lease the vehicle.

About one out of every four new vehicles that is sold today is leased, according to Edmunds.com. So, while leasing is popular, most car buyers still prefer to pay cash for their vehicles or finance them. To decide which option is right for you, you need to understand the details and nuances of each.

Paying In Cash and Vehicle Financing

From a pure cost standpoint, paying in full without financing may be the smartest option — if

Video: Do Americans Understand Their Credit Scores?

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Who has the better credit score – Oprah Winfrey or Donald Trump? We asked Americans from all walks of life this and other credit-related questions when MoneyTips Consumer Advocate Kristin Malia took to the streets of Santa Monica, CA.

You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips.

Credit-Builder Loans 101

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Applying for credit for the first time is a bit like applying for your first job. People are hesitant to hire you because you don’t have any job experience, and you can’t get any job experience because nobody will hire you. In the case of credit applications, creditors are leery of extending credit if they don’t have any evidence that you will pay your bills on time.

Credit-builder loans are designed to help those with little or no credit history to build their credit. Loan amounts are relatively small (typically between $500 – $1500) to minimize the lender’s risk. The lender reports your activity to the credit bureaus, thus establishing your credit history.

There are three basic types of credit-builder loan:

  • Standard Secured – The amount of your loan is backed by money that you already have in a savings account. That collateral is frozen, and …

Trump Changing Use Of Credit Scores In Home Loans

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Are you having trouble getting a home loan because you have no suitable credit history? Has your credit activity been dormant for a long enough time that lenders can’t properly evaluate your risk?

The FICO credit-scoring standard used by Fannie Mae and Freddie Mac requires that potential borrowers have a credit account open for at least six months to be able to assess credit risk properly. Without that background, you are “credit invisible.” You may be responsible with money and pay rent, utilities, and cell phone bills on time – but those aren’t considered in evaluating mortgage loan applications.

According to data from the Consumer Financial Protection Bureau (CFPB), approximately 26 million people are considered to be credit invisible. Nearly 19 million people are similarly shut out of mortgages because they have “stale credit” – their credit history hasn’t had enough rece…

We Paid $104 Billion In 12 Months Just On Credit Card Interest!

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According to Federal Reserve data compiled by MagnifyMoney, Americans paid $104 billion in interest on credit card purchases over the twelve months ending March 2018. That’s not outstanding credit card balances, which are near $1.04 trillion as of May 2018 – that’s just interest charges on the outstanding amount.

How much did you contribute to that $104 billion total in interest payments? Your outstanding balance may not be $1.04 trillion, but every dollar of outstanding balance that you carry cuts into your overall purchasing power. You’re slicing into the funds you need for future purposes.

If you do carry balances, you’re likely to pay even more for the privilege. The Federal Reserve has been raising interest rates in small increments for years now to bring them back toward typical historical levels. Rates have increased twice in 2018 by 0.25% and are likely to increase two more times this year. Banks generally pass those rates on to you in the form of h…

Top 3 Mortgage Rejection Reasons

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Have you been denied a mortgage loan recently? Rejections usually don’t come down to a single reason, because lenders look at your overall financial status.

However, some factors increase your risk of rejection. According to NerdWallet’s 2018 Home Buyer Report, three issues stand out as primary reasons for mortgage denials based on the most recent available data (2016). The top two are fundamental to the Ability-to-Repay rules outlined by the Consumer Financial Protection Bureau (CFPB) in the wake of the financial crisis. The third is more related to the home than the borrower.

1. Debt-to-Income ratio (DTI) – Your DTI ratio is your total monthly debt obligations divided by your gross monthly income. NerdWallet found that 28% of mortgage loans were rejected primarily for a poor DTI, the highest percentage of any factor evaluated.

DTI limits may vary, but the upper limit has generally been in the 43% to 45% range for a loan to be consider…

Nearly Half Of Millennials Feel Held Back By Credit Score

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Is a bad credit score dragging you down? Almost half of millennials (46%) feel that way, according to a new survey conducted by OppLoans.

It’s an understandable feeling, given that millennials came of age during one of the worst recessions in decades. Many millennials emerged from the recession with delayed careers or lower-than-expected earnings and burdened with excessive student loan debt before they even started.

As a result, millennials tend to have lower average credit scores. According to Experian, millennials had an average VantageScore of 638 in 2017 – well below the overall average score of 675. In the previous year, TransUnion found that 43% of millennials had scores considered to be subprime.

The ripple effects of bad credit are reflected in many of the survey results. One-quarter of millennials claim that poor credit adversely affected their housing opportunities, while 14% of millennials continue to live with roommates because bad …

How To Best Pull Off A Balance Transfer

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By Tracy Scott

Have you been ignoring those credit card offers that arrive in your mailbox each week? If so, reconsider slam-dunking them into the circular file… especially if you have credit card debt you’d like to eliminate. Sound counterintuitive? A balance transfer may be the quickest way for you to pay off your current credit card debt. Learn how to spot the best ones (often found online) and how to perform an easy transfer that can help you pay off your debt quicker and with less interest.

Step 1. Understand the Basics

All balance transfer credit cards are not created equal. Before you apply for a zero-interest credit card, you need to know the important aspects of selecting a new card that should impact your final decision. Banks are competing for your business, so be sure to compare different balance transfer fees, post-introductory rates, and bala…