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IS THERE ANYTHING IN YOUR CREDIT REPORT
THAT WOULD HARM YOUR CHANCES
OF GETTING A MORTGAGE?
CREDIT SCORES are used by employers
increasingly in their hiring decisions. Many jobs in today's
new economy require security clearances in addition to the now
normal background investigations, em- ployers, in light of
September 11th, 2001 attacks, now consider your personal credit
report and score as part of their process.
If you think there may be a problem, visit
the Institute of Consumer Financial Education's web site at:
www.icfe.info
The ICFE is a wonderful resource for
consumers of all ages to learn more about spending, saving and the
wise use of credit.
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Mortgage
Terms You Need To Know
As you comparison shop before you sign a home
equity loan or line of credit contract, review the
following terms:
Amortization:
Principal is paid down over the the life of the loan.
Annual membership or participation fees:
Fee that is charged annually for use of the line of credit,
whether or not you use the credit
Annual Percentage Rate (APR):
The cost of credit on a yearly basis expressed as a
percentage.
Application fee:
Fees paid with the application forms, such as for property
appraisal or a credit report.
Balloon payment:
A lump sum amount that is required as the final payment
Cap:
A limit on how much the variable interest rate can
increase.
Closing costs
Fees paid at the closing, such as preparing and
filing the mortgage, taxes, title search and insurance
papers.
Credit limit:
The maximum amount you can borrow
Equity:
The difference between the fair market value or
appraised value and the outstanding mortgaged
amount.
Index:
The base for rate changes that the lender will use to
decide how the much the APR will change during
the term of the line of credit.
Margin:
The number of percentage points the lender adds to
the index rate to determine the APR.
Minimum payment:
The minimum amount that you must pay on your
account, usually monthly.
Points:
A point is the value of one percent of the amount of
your credit line and is paid at closing.
Right of Rescission:
Allows the borrower 3 full business days to cancel the
transaction.
Security interest:
An interest that a lender takes in the borrower's property to
assure repayment.
Transaction fee:
A charge each time you use your credit line.
Variable rate:
An interest rate that will change periodically in
response to an index.
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First-time credit
user/seeker?
Need help
obtaining credit?
"Credit
When Credit Is Due"
is a credit new education course that really works. Over
a third of the
graduates report an in- crease in their credit score and credit rating
within a year of completing this unique 12 week course.
"Credit
When Credit Is Due"
is designed for those
individuals who have had some negatives, such as a delinquent loan, a
late payment or bankruptcy.
The twelve lessons may be done as a home study or you may join classroom version that
guides you through the credit puzzle.
Upon completion, those
who complete the final
exam receive a certificate
of completion and your name goes along with about 19,000 other
graduates,
into a national data base.
You will also be entitled to discounts on loan applications, waiver of
fees or a lowering of the points and with certain utilities, a waiver of
deposits and much, much more.
Click here for more information about
"Credit
When Credit Is Due."
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