Becoming a part of Statistics

According to Washington Post writer Guy Gugliotta, there was “a survey of 44 cities, the Center on Budget and Policy Priorities found that 75 percent of the low-income households earning less than $10,000 per year are paying more than 30 percent of their incomes in rent.” (a.08, Nov25, 1992)

In today’s day and age, many have found themselves closer and closer to being part of this statistic. The rich are getting richer and the poor are getting poorer. Soon there will no longer be a middle class; just the poor and the rich. Now I consider myself to be of the lower middle class income level. However, I would be ranked in the lowest class if it wasn’t for installment loans for people with bad credit. In fact, I think many people depend on money loans to get by these days. Without this option, the middle class would become obsolete.

Payday loans are for all income levels

Some are as low as 50 dollars and others as high as 1500 dollars, whichever the case, Personal Money Market can help alleviate the situation that’s plaguing America today.

“The study discovered that poor households in California had the gravest problems with rents, with five California urban areas showing 87 percent or more of low-income households unable to obtain affordable housing.” (a.08)

Every product or service you can think of is on the rise, especially in California where many of its residents are unable to pay their rent. I’m not personally from California, but I have been in this dire situation on more than one occasion. My pay day just wasn’t coming soon enough in some cases. In one instance, I had to send my 7-year-old daughter out of state to go live with family because I could not come up with rent. I was not going to drag my little girl through homeless shelters, so I sacrificed my time with her. We are now together again, but I don’t know what the outcome would have been if I wasn’t able to get short term loans online during the hard times.

How loans can help.

Hard money loans helped me stay afloat and, in many situations, can help all families keep their housing or even get the deposit to move into a new home. Now instant cash isn’t always an option. Some people resort to illegal activities just to keep their home. This is not an option to the average person. You can get payday cash with a fax less payday loan. I use same day loans for a lot of different reasons. I avoided homelessness once. I also repaired my car a few times using money from an online payday loan.

Pay day loan advances can’t fix the housing crisis in California and throughout the United States, but It can help a lot of working people keep what they have strived so hard to achieve. I am grateful everyday for Personal Money Market. Had they not help loan me fast cash, I would not be here today to tell you about this very topic. Thanks for reading and I hope you can find relief with all your money woes through the same service.

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Pictured: A sweat lodge in Hawaii. Many cultures have used sweat lodges for centuries, but they are very selective about the materials used. Image from Flickr.

James Arthur Ray a couple of weeks ago charged a few dozen of his followers $9,000 to attend a five-day retreat that culminated in spending couple of hours in a makeshift sweat lodge. Three people died and several others were hospitalized.

A lawyer representing a woman who survived the ordeal says Ray “created a death trap.” The “sweat lodge ceremony” took place after five days of activities that including physically taxing exercises and fasting. The lawyer represents Sidney Spencer, 59, who is suing Arthur Ray because she nearly died from kidney and liver failure.

An empire of crazy

The incident is still under investigation, but as sweat lodge survivors start speaking out, it’s beginning to look like there’s a very good change Arthur Ray will end up in prison. At first, I thought those prosecuting him didn’t have a leg to stand on because the whole thing was voluntary. In fact, many participants probably had to get hard money loans to pay the $9,000 fee for the retreat.

However, Beverly Bunn told The Associated Press that when someone reported that another participant was passed out, he said “Leave her alone. She’ll be dealt with in the next round.” I do believe that there is a term for letting someone die: negligent homicide.

Who is Arthur Ray?

Arthur Ray created the best-selling documentary “The Secret,” and he has appeared on “The Oprah Winfrey Show” several times, gaining him quite the following. I can see a sort of “Million Little Pieces” scenario unfolding soon. Remember what happened when it turned out the author of that book was a fraud? Imagine what it would be like if it turned out an Oprah cohort was a murderer!

Arthur Ray urged all of the participants to stay in the 120-degree sweat lodge for the duration of the ceremony. Sweat lodge survivors say they were chastised if they tried to leave, though they were not physically forced to stay. Read the full story about Arthur Ray’s sweat lodge at ABC News, and listen to CNN audio from a sweat lodge survivor.

Many people are looking for mortgages to aid them with credit repair. The recession has left finances disheveled, and people are trying to find ways to regroup. Although recent crackdowns on mortgage lending have been put into place by the government, there are still some unscrupulous lenders trying to find their way back into the mortgage market.

Dani Babb, founder of The Babb Group, which offers real estate consulting, said, “Since early this year … a new wave of people are finding ways to scam home buyers.” Here are some of the newest programs they are advertising that are less than advantageous to the potential homeowner.

Hard money lending loans

Hard money loans may seem like a good idea, but they are not designed to be used for large purchases like homes. These types of loans disregard a borrower’s credit score and employment status. These can even be offered to consumers who have already been turned down for government-backed mortgages.

Because the loan is considered more risky due to credit, lenders may require up to a 30 percent down payment. Some may circumvent the down payment if the applicant puts up some form of collateral, such as a car. Hard money loans come in several forms, but in general it is best to stick to smaller, short-term hard money loans.

Advances to First-time homebuyers tax credit

The first-time homebuyer’s tax credit offers up to $8,000 to qualifying buyers. Last month, HUD agreed to allow FHA-approved mortgage lenders to offer eligible borrowers an “advance based on the tax credit.” Borrowers are still required to make a 3.5 percent down payment, but they can include the tax credit value to it or use the money for closing costs. Repayment can be tricky, however.

Borrowers will have to pay the loan each month and pay an additional sum when they receive the tax credit or spread their payments out over a number of years. These payments will have interest attached. The reality is that if borrowers need to rely on the tax credit to make the down payment, they most likely will have problems affording their loan payments. It may be wise to work on credit repair to open doors to better loan options before using the tax credit for this purpose.

Zero-percent down financing

Some states are creating programs that give potential homeowners the 3.5 percent down payment they need to procure an FHA-backed loan as a second loan. Piggyback loans — where the home buyer has two loans — are also becoming more popular. In a lot of cases, lenders who cannot provide the entire loan amount suggest second mortgages from another loan company. These secondary companies can carry high interest rates, some close to 25 percent.

In other cases, buyers try to step in and “lend” the money to eager homeowners, persuading them to pay back the loan over time. Piggyback and zero-down loans create two mortgage payments every month. This can be a difficult situation for homeowners to manage and studies are showing it makes “walking away” from the home more probable if financial disaster occurs.

Homeowners

In the end, potential homeowners have to be smart and do their own research. The reality is that the best idea is to have a down payment, get a traditional loan and pay it off like millions of other people do. If that isn’t possible, consumers should consider putting off their home purchase, working on their credit repair and saving money. There are dishonest lenders waiting for opportunities to strike.

Get professional credit repair help

Speak to a professional today and take proactive steps to repair your credit. For a FREE credit consultation, call 1-877-563-2076.

We’re in the middle of a credit crunch, and getting an installment loan – whether it’s an auto loan, a home loan, or a personal loan – requires better credit than ever before. Creditors have their guards up and lending standards are becoming increasingly strict.

The most common credit-scoring model used by lenders is the FICO score. The FICO model (originally Fair Isaac) was established in 1956 by an engineer named Bill Fair and a mathematician named Earl Isaac. A FICO score can range from a very risky 200 to a perfect 900.

In a recent CNNMoney.com report, John Ulzheimer, president of consumer education at Credit.com, stated that FICO requirements are on the rise: “You need a 750 or better today to have the same treatment you got with a 700 two years ago,” he says. John D’Onofrio, CEO of Autoloandaily.com, concurred: “Two years ago a 680 was enough to get a great car loan rate. Today it’s often the minimum to qualify at all.”

How to maximize your FICO score

If you’re thinking of borrowing money (other than hard money loans like small payday loans or emergency cash loans that don’t require credit checks) you need to do everything you can to boost your FICO score before you apply. Here are some things you can do to maximize your credit score:

Find your score

You can get free estimates of your credit score at any number of websites (like Creditkarma.com). But if you’re serious about getting an installment loan on the best available terms, you need to see what your lender will see. Lenders will be looking at your actual FICO score, based on credit reports from three credit bureaus: Experian, Equifax, and TransUnion. To get a better sense of what lenders will actually see, for a small fee you can get one representative FICO score at myfico.com.

Look for mistakes

According to a Zogby International poll, one-third of people who pull their credit reports find errors, so check yours closely. When you get your FICO score at myfico.com, you’ll get a copy of the report it was based on. You’re entitled to one free report from each of the three credit bureaus every 12 months. So once you have your score and the report it was based on, you can get the other two reports for free at annualcreditreport.com

If you find errors, request corrections, following the instructions on each credit bureau’s website. Inaccurate delinquent marks are common. Fixing just one of those can improve your FICO score dramatically.

Never be late on payments

Your payment history is the most important part of your credit score. Lenders can’t report late payments to the bureaus until they’re 30 days past due. But keep track of your payment due dates and take precautions not to be late at all.

If you know you can’t pay a bill on time, think about getting a quick payday loan to pay the bill. If you will be able to get by on your next paycheck after paying the loan back, a cash advance can save your credit score, but don’t let payday loans become a habit. If you make a late payment, getting right back on track will eventually improve your score, but if you fall more than 30 days behind, the damage to your FICO score can haunt you for years.

Don’t use more than 20% of your total available credit

Another important factor in calculating your score is how much you owe compared to how much credit is available to you. According to Ulzheimer, 10% is ideal, but a ratio as high as 20% is acceptable. Unfortunately, banks are scurrying right now to raise interest rates before new regulations go into effect (read Credit Card Company Comeuppance), and they’re also rushing to lower credit limits and cancel unused accounts, all of which make it more difficult to maintain an ideal ratio.

Be aware of the limits on your credit accounts, watch closely for changes on your monthly statements, and don’t use more than 20% of your available credit on any card or in total. If you’re thinking about getting a home or auto loan, try to reduce your account balances even farther before you apply.  If you’re working to pay down your debts before applying for new credit, remember that it may take a couple of months before reduced balances will appear on your credit report.

Preserve old accounts

A long credit history without late payments is the most important part of your FICO score. Closing old accounts not only increases your credit utilization ratio, it shortens your credit history.  So don’t cancel your oldest cards. You can avoid having lenders close old accounts by transferring recurring charges to them from the accounts you use more regularly.

Don’t try to out-smart the credit bureaus

Other, less important factors are involved in calculating your FICO score, but they are more difficult to manipulate. For example, part of your score is based on your mix of credit types, such as mortgages, car loans, and credit cards. But don’t buy a car or apply for new credit cards just to boost your score. The effects of new credit on a FICO score are complicated, and it is much easier to improve your score by carefully tending a few long-standing credit accounts and making your payments on time.

If you’re looking for a car loan today, apply here!