Credit Cards For Less Than Perfect Credit

Most HAMP modifications will end in a re-default or foreclosure

Most Americans have managed to escape foreclosure and lower their monthly payments by modifying their mortgage loans, providing relief to many families. But most homeowners that received a mortgage modification loan are likely to re-default on their payments within a year, according to a recent report.

A recent Fitch Ratings study reveals that between 65 percent and 75 percent of homes modified through the federal Home Affordable Modification Program, but not backed by a federal agency, are likely to default on their mortgage loans within one year, CNN Money reports. Read the full post

Mortgage modifications may be offered to those who didn’t qualify under federal programs

Homeowners that are ineligible to receive a mortgage modification loan under the federal Home Affordable Modification Program may receive some aid if their mortgage loan is held by Fannie Mae or Freddie Mac, according to Housing Watch.

Distressed homeowners whose monthly mortgage payments are less than 31 percent of their income may be disappointed to find that they may not qualify for a modification under HAMP. However, Fannie Mae and Freddie Mac may offer modifications that reduce interest and deferred fees, though they will not cut the principal balance owed, Housing Watch reports. Read the full post

Offers for credit cards were up during the first three months of this year.

During the recession, and even after, many lenders may have become more resistant to offering consumers loans, whether they were in the form of mortgages or credit cards.

Given some of the credit difficulties the country faced – rising credit card default and home loan foreclosure rates, for example – lenders tried to reduce their risks by being more careful to whom they gave money. Read the full post

Mortgage rates hit a new record low again in May.

Thanks in part to last week’s disappointing employment report, fixed mortgage rates fell again this week to yet another record low.

The small amount of job growth in the private sector, reported as just 41,000 new jobs in May, highlighted the questionable strength of the recovery of the U.S. economy. Rates on fixed mortgages dropped as a result, said financial site Bankrate. According to the site’s national survey, the new rate for 30-year fixed-rate mortgages is 4.88 percent, down from 4.95 percent last week.

The reason for the drop, the site said, was that the weak job market scared investors into U.S. Read the full post

There are several ways to fight a credit denial.

The economy may be improving, but many consumers may still find it difficult to get any kind of loan.

However, there are a number of ways for those seeking a loan to get one even after they get rejected, according to CNN Money. If, for example, a consumer is denied for a credit card, the company that rejected them usually sends a letter explaining the denial. If one of the reasons was a low credit score, the consumer is entitled to a free credit report within 60 days.

The consumer can also dispute what they feel are inaccuracies at) the credit bureaus with a letter, and the bureau has a month to investigate the claim, the article said. Read the full post

Many of us have been guilty of it: spending way beyond our means over the last few years. And it’s no wonder; we all were in overdrive, enjoying a booming economy and a healthy housing market. However, all good things had to come to an end, that the economy was no exception.

As a result, many Americans found themselves in record debt; savings depleted, homes foreclosed; and credit cards maxed.

Fiscally Responsible Spending

The other side of this chaos, however, has been a silver lining, of sorts. Fiscally responsible consumers have emerged, giving way to more responsible spending. L

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